https://www.taxtmi.com/caselaws?id=157747 Section 13AA of the Orissa Sales Tax Act, 1947 was held unconstitutional because it required tax deduction at source from all works-contract payments without any mechanism to exclude transactions outside the sales tax field. The provision applied even to pure labour or service contracts where no sales tax could arise, and it gave contractors no certificate or other safeguard to prevent excessive deduction. The court contrasted this with section 194C of the Income-tax Act, 1961, which contains a certificate-based protection. The absence of any similar control or remedy made the deduction scheme discriminatory and confiscatory, and the provision was struck down. en-us Wed, 28 Apr 1993 00:00:00 +0530 Thu, 10 Oct 2013 14:06:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=157747 Section 13AA of the Orissa Sales Tax Act, 1947 was held unconstitutional because it required tax deduction at source from all works-contract payments without any mechanism to exclude transactions outside the sales tax field. The provision applied even to pure labour or service contracts where no sales tax could arise, and it gave contractors no certificate or other safeguard to prevent excessive deduction. The court contrasted this with section 194C of the Income-tax Act, 1961, which contains a certificate-based protection. The absence of any similar control or remedy made the deduction scheme discriminatory and confiscatory, and the provision was struck down. Case-Laws VAT and Sales Tax Wed, 28 Apr 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=157747