https://www.taxtmi.com/caselaws?id=164043 A tax deduction at source mechanism for works contract payments must stay within the charging provision and cannot operate on constitutionally exempt or non-taxable components. Section 106 of the Meghalaya VAT Act was treated as a machinery provision ancillary to the levy on taxable turnover, so deduction could not be made on the gross contract value where labour, exempt sales, inter-State sales, sales outside the State, and import or export sales are excluded. To preserve validity, the provision was read down so that deduction applies only to taxable turnover, with excess deduction refundable and any shortfall recoverable in accordance with law. en-us Thu, 10 Sep 2009 00:00:00 +0530 Sat, 01 Nov 2014 13:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164043 A tax deduction at source mechanism for works contract payments must stay within the charging provision and cannot operate on constitutionally exempt or non-taxable components. Section 106 of the Meghalaya VAT Act was treated as a machinery provision ancillary to the levy on taxable turnover, so deduction could not be made on the gross contract value where labour, exempt sales, inter-State sales, sales outside the State, and import or export sales are excluded. To preserve validity, the provision was read down so that deduction applies only to taxable turnover, with excess deduction refundable and any shortfall recoverable in accordance with law. Case-Laws VAT and Sales Tax Thu, 10 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164043