https://www.taxtmi.com/caselaws?id=164992 Tax under section 3(2) of the Karnataka Value Added Tax Act, 2003 applies where taxable goods are purchased from unregistered persons and used in execution of a works contract, even if the goods are absorbed in the finished work rather than resold in the same form. The liability arises when the unregistered suppliers have not collected tax and no input tax has been paid, and set-off cannot rest on mere book adjustment. Statutory labour deductions remain available in works contracts: actual labour charges may be deducted, and where not ascertainable, the prescribed 30 per cent deduction applies for civil works. Amounts attributable to non-sale activities such as stone cutting and landscaping must be excluded to the extent proved. en-us Fri, 16 Jul 2010 00:00:00 +0530 Wed, 01 Oct 2014 11:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164992 Tax under section 3(2) of the Karnataka Value Added Tax Act, 2003 applies where taxable goods are purchased from unregistered persons and used in execution of a works contract, even if the goods are absorbed in the finished work rather than resold in the same form. The liability arises when the unregistered suppliers have not collected tax and no input tax has been paid, and set-off cannot rest on mere book adjustment. Statutory labour deductions remain available in works contracts: actual labour charges may be deducted, and where not ascertainable, the prescribed 30 per cent deduction applies for civil works. Amounts attributable to non-sale activities such as stone cutting and landscaping must be excluded to the extent proved. Case-Laws VAT and Sales Tax Fri, 16 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164992