Work Contract under UPVAT Act

[Jasbir Uppal]

Dear professional bothers & sisters,

My client is dealing in the business of civil work contract & for consumption of material import the goods from outside Uttar Pradesh. As specified in the work order signed between the contractor and contracttee . The goods dispatched from outside state to the respective sites as compliance of Section 3 of CST Act,1956.

As per provisions of Rule 9 Determination of turnover of sale of goods involved in the execution of a works contract deducted all amounts representing the value of goods in which property has been transferred in the execution of the works contract as a result of sale in the course of interstate trade or commerce from the total amount.

Our question is when the appellant authorities allowed exemption on inter-state transaction under Rule 9(e) of UPVAT will the assessing officer would also have power to impose the tax on central sale after treating these transactions as central sale under section 29 sub section 9 of UPVAT act. Even if the assessing officer has allowed exempt transaction in his original central sale tax assessment order.

Please provide case laws.

With Regards

J.S.Uppal

Tax Consultant

AI Summary

Consultant Questions Authority to Impose Central Sales Tax on Exempt Transactions Under Rule 9(e) of UPVAT Act A tax consultant inquires about the applicability of the UPVAT Act and CST Act regarding the taxation of goods involved in interstate trade for a civil works contract. The consultant questions whether an assessing officer can impose central sales tax on transactions deemed exempt under Rule 9(e) of the UPVAT Act, despite the original assessment order allowing exemptions. A respondent clarifies that under the composition scheme, the value of interstate goods is deducted to determine taxable turnover, but local UPVAT applies to goods incorporated in works contracts within Uttar Pradesh. The consultant seeks further clarification on the assessing officer's authority under Section 29(9) of the UPVAT Act.