https://www.taxtmi.com/caselaws?id=161993 Sections 22(3) and 22(4) of the Andhra Pradesh VAT Act, 2005 were found unconstitutional because they required tax deduction at source on gross payments under works contracts without ensuring that the underlying transaction was within the State's taxing power. The court applied the principle that a deduction mechanism cannot authorise collection on labour-only contracts, non-taxable transfers of property in goods, or goods involved in inter-State trade, outside sales, or export. On that basis, the provisions were held beyond the legislative competence of the State and the writ petitions were allowed. en-us Mon, 21 Aug 2006 00:00:00 +0530 Fri, 14 Feb 2014 14:02:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161993 Sections 22(3) and 22(4) of the Andhra Pradesh VAT Act, 2005 were found unconstitutional because they required tax deduction at source on gross payments under works contracts without ensuring that the underlying transaction was within the State's taxing power. The court applied the principle that a deduction mechanism cannot authorise collection on labour-only contracts, non-taxable transfers of property in goods, or goods involved in inter-State trade, outside sales, or export. On that basis, the provisions were held beyond the legislative competence of the State and the writ petitions were allowed. Case-Laws VAT and Sales Tax Mon, 21 Aug 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161993