https://www.taxtmi.com/caselaws?id=163824 A State works-contract tax deduction provision was held unconstitutional because it required deduction from payments to contractors and subcontractors regardless of whether the underlying transaction was an intra-State sale, inter-State sale, sale outside the State, or a sale in the course of import. The constitutional limits in Article 286 and the State's power under Entry 54 of List II do not permit collection beyond the State's taxing competence, and Article 366(29A) expands the field only to the extent of lawfully taxable works contracts. The provision was therefore declared ultra vires, and refund of the deducted tax was ordered. en-us Wed, 13 Aug 2008 00:00:00 +0530 Mon, 01 Dec 2014 20:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163824 A State works-contract tax deduction provision was held unconstitutional because it required deduction from payments to contractors and subcontractors regardless of whether the underlying transaction was an intra-State sale, inter-State sale, sale outside the State, or a sale in the course of import. The constitutional limits in Article 286 and the State's power under Entry 54 of List II do not permit collection beyond the State's taxing competence, and Article 366(29A) expands the field only to the extent of lawfully taxable works contracts. The provision was therefore declared ultra vires, and refund of the deducted tax was ordered. Case-Laws VAT and Sales Tax Wed, 13 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163824