https://www.taxtmi.com/caselaws?id=161468 Section 19-A of the Karnataka Sales Tax Act, as re-enacted, was invalid because its tax-deduction-at-source mechanism did not stay confined to taxable turnover under section 5-B. The provision allowed deduction on gross works contract payments without fully excluding amounts relating to inter-State sales, outside sales, import sales, and other non-taxable components. The Court applied the settled principle that a machinery provision cannot widen the charge created by the taxing section, and held that partial exclusions for labour and a 25 per cent reduction were insufficient. The provision was therefore beyond the State Legislature's competence, and prior collections were to be adjusted in future assessments. en-us Fri, 13 Sep 2002 00:00:00 +0530 Wed, 29 Jan 2014 15:27:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161468 Section 19-A of the Karnataka Sales Tax Act, as re-enacted, was invalid because its tax-deduction-at-source mechanism did not stay confined to taxable turnover under section 5-B. The provision allowed deduction on gross works contract payments without fully excluding amounts relating to inter-State sales, outside sales, import sales, and other non-taxable components. The Court applied the settled principle that a machinery provision cannot widen the charge created by the taxing section, and held that partial exclusions for labour and a 25 per cent reduction were insufficient. The provision was therefore beyond the State Legislature's competence, and prior collections were to be adjusted in future assessments. Case-Laws VAT and Sales Tax Fri, 13 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161468