https://www.taxtmi.com/caselaws?id=160820 Compulsory deduction of tax at source from the entire contract amount was invalid to the extent it applied to turnover relating to inter-State sales, outside sales, and sales in the course of import. The Kerala HC held that the State's taxing power under the KGST Act is confined to taxable turnover within its competence, and a deduction mechanism cannot operate on amounts it has no power to tax, even provisionally. Because the amended provision did not permit effective segregation of non-taxable turnover at the deduction stage, section 7(7B) and rule 22A(2) were held ultra vires insofar as they authorised deduction from non-taxable turnover. en-us Mon, 05 Aug 2002 00:00:00 +0530 Wed, 25 Dec 2013 11:57:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160820 Compulsory deduction of tax at source from the entire contract amount was invalid to the extent it applied to turnover relating to inter-State sales, outside sales, and sales in the course of import. The Kerala HC held that the State's taxing power under the KGST Act is confined to taxable turnover within its competence, and a deduction mechanism cannot operate on amounts it has no power to tax, even provisionally. Because the amended provision did not permit effective segregation of non-taxable turnover at the deduction stage, section 7(7B) and rule 22A(2) were held ultra vires insofar as they authorised deduction from non-taxable turnover. Case-Laws VAT and Sales Tax Mon, 05 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160820