Compounded tax option for works contractors is work-order specific and cannot extend to unrelated contracts.

A compounded tax option for works contractors is an optional substitute for normal taxation, but the permission is confined to the specific works contract for which it is sought and granted. The third proviso to Section 8, read with the return requirements, shows that the option is work-order specific because the contractor must disclose the work order, project details, and contract particulars on a quarterly basis. A contractor cannot use permission granted for one contract to cover unrelated works for which no separate option was filed or approval obtained. The assessee was therefore not entitled to compounded tax beyond the covered contracts, and the reassessment was upheld.

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Issues: Whether a works contractor who has been granted permission to pay tax at compounded rates for specified works contracts can claim that a single option under the compounding scheme automatically covers all other works undertaken during the year.

Analysis: The compounded rate scheme under the Act is an optional method of payment in lieu of the normal charging provision. The third proviso to Section 8 permits a single option for all works undertaken in a year, but that expression is confined to the individual components of the particular works contract for which permission is sought and granted. The relevant rules require quarterly returns and separate disclosure of the work order, project details, and contract particulars, showing that the permission is work-order specific. The Court held that the assessee cannot extend permission granted for one contract to unrelated works for which no option was filed or permission obtained.

Conclusion: The assessee was not entitled to pay compounded tax for works beyond those specifically covered by the permission granted, and the reassessment was upheld.

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