https://www.taxtmi.com/caselaws?id=164212 Section 40 of the West Bengal Value Added Tax Act, 2003, which required deduction at source from payments for works contracts, was found unconstitutional because it provided no workable mechanism to identify the taxable contractual transfer price at the deduction stage. The statutory scheme and connected rules did not enable contractees to separate non-taxable components such as labour, service, inter-State, export, or import elements before deduction, so the provision operated indiscriminately and captured amounts outside tax liability. It was therefore held uncertain, unreasonable, arbitrary, and beyond constitutional limits. Relief followed by directing adjustment of amounts deducted and refund of any excess to works contractors. en-us Thu, 25 Feb 2010 00:00:00 +0530 Sat, 19 Apr 2014 16:03:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164212 Section 40 of the West Bengal Value Added Tax Act, 2003, which required deduction at source from payments for works contracts, was found unconstitutional because it provided no workable mechanism to identify the taxable contractual transfer price at the deduction stage. The statutory scheme and connected rules did not enable contractees to separate non-taxable components such as labour, service, inter-State, export, or import elements before deduction, so the provision operated indiscriminately and captured amounts outside tax liability. It was therefore held uncertain, unreasonable, arbitrary, and beyond constitutional limits. Relief followed by directing adjustment of amounts deducted and refund of any excess to works contractors. Case-Laws VAT and Sales Tax Thu, 25 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164212