https://www.taxtmi.com/caselaws?id=256796 State VAT on works contracts is limited by Article 286, so tax cannot be levied on the component of a transaction that amounts to an inter-State sale, a sale outside the State, or an import. Although a works contract may be treated as divisible by legal fiction after the Forty-sixth Amendment, the taxing power still cannot extend beyond these constitutional limits. In the turnkey-contract dispute, the assessing authority treated the arrangement as a composite works contract, but the record lacked adequate findings on the true nature of the transactions reflected in the books and returns. The assessment was therefore set aside and the matter remanded for fresh consideration and findings in accordance with law. en-us Tue, 23 Dec 2014 00:00:00 +0530 Tue, 17 Feb 2015 13:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=256796 State VAT on works contracts is limited by Article 286, so tax cannot be levied on the component of a transaction that amounts to an inter-State sale, a sale outside the State, or an import. Although a works contract may be treated as divisible by legal fiction after the Forty-sixth Amendment, the taxing power still cannot extend beyond these constitutional limits. In the turnkey-contract dispute, the assessing authority treated the arrangement as a composite works contract, but the record lacked adequate findings on the true nature of the transactions reflected in the books and returns. The assessment was therefore set aside and the matter remanded for fresh consideration and findings in accordance with law. Case-Laws VAT and Sales Tax Tue, 23 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=256796