https://www.taxtmi.com/caselaws?id=162681 Unamended section 26(2) of the Madhya Pradesh VAT Act, 2002 was held ultra vires because it operated like the earlier works-contract deduction provision without excluding labour, service and other non-taxable elements from the contract value. The Court applied the settled principle that tax deduction at source on works-contract payments is invalid to that extent if it captures amounts not liable to tax. Deductions made under the provision before amendment were therefore directed to be refunded, subject to adjustment against any tax already payable or assessed. The petitioner's substantive tax liability, if lawfully assessed, was left unaffected. en-us Thu, 03 May 2007 00:00:00 +0530 Wed, 12 Mar 2014 16:15:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=162681 Unamended section 26(2) of the Madhya Pradesh VAT Act, 2002 was held ultra vires because it operated like the earlier works-contract deduction provision without excluding labour, service and other non-taxable elements from the contract value. The Court applied the settled principle that tax deduction at source on works-contract payments is invalid to that extent if it captures amounts not liable to tax. Deductions made under the provision before amendment were therefore directed to be refunded, subject to adjustment against any tax already payable or assessed. The petitioner's substantive tax liability, if lawfully assessed, was left unaffected. Case-Laws VAT and Sales Tax Thu, 03 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=162681