https://www.taxtmi.com/caselaws?id=127637 Composite building contracts may be split for sales tax purposes so that the materials component is treated as a taxable sale of goods under Entry 54 and the Rajasthan Sales Tax Act, while the contractor remains a dealer when goods are supplied for remuneration in the course of business. The timing of tax depends on when the sale occurs, so a contract made before commencement is not exempt if the taxable sale arises after commencement. However, a valuation scheme based on an artificial deduction formula and estimated labour content was held to exceed legislative power because tax under Entry 54 must be linked to the actual sale price of goods. The impugned valuation provisions were severed as ultra vires. en-us Tue, 20 Nov 1956 00:00:00 +0530 Wed, 13 Mar 2013 15:01:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127637 Composite building contracts may be split for sales tax purposes so that the materials component is treated as a taxable sale of goods under Entry 54 and the Rajasthan Sales Tax Act, while the contractor remains a dealer when goods are supplied for remuneration in the course of business. The timing of tax depends on when the sale occurs, so a contract made before commencement is not exempt if the taxable sale arises after commencement. However, a valuation scheme based on an artificial deduction formula and estimated labour content was held to exceed legislative power because tax under Entry 54 must be linked to the actual sale price of goods. The impugned valuation provisions were severed as ultra vires. Case-Laws VAT and Sales Tax Tue, 20 Nov 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127637