https://www.taxtmi.com/caselaws?id=103528 The Karnataka Sales Tax Act, 1957, as applied to works contracts, was explained as valid where the law fixes the situs of the deemed sale without extending the State's taxing power beyond constitutional limits. Tax under section 5B was confined to the value of goods transferred in execution of the contract, and the labour and other deduction rules were upheld because they reflected the non-taxable service component and permitted percentage deductions where actual expenses were not ascertainable. Different rates in the Sixth Schedule were also upheld, as classification by the nature of the works contract and use of goods was treated as a rational basis and not discriminatory. en-us Tue, 17 Nov 1992 00:00:00 +0530 Mon, 16 Dec 2013 14:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103528 The Karnataka Sales Tax Act, 1957, as applied to works contracts, was explained as valid where the law fixes the situs of the deemed sale without extending the State's taxing power beyond constitutional limits. Tax under section 5B was confined to the value of goods transferred in execution of the contract, and the labour and other deduction rules were upheld because they reflected the non-taxable service component and permitted percentage deductions where actual expenses were not ascertainable. Different rates in the Sixth Schedule were also upheld, as classification by the nature of the works contract and use of goods was treated as a rational basis and not discriminatory. Case-Laws VAT and Sales Tax Tue, 17 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103528