https://www.taxtmi.com/caselaws?id=172983 Under the Karnataka Sales Tax works contract valuation rules, proportionate depreciation on plant and machinery used in execution is treated as deductible because the levy must remain confined to the value of goods transferred, and the deduction scheme must be read consistently with that limit. Interest charged by clients, postage, telephone and telex charges, and vehicle tax are also deductible as establishment expenses relatable to the supply of labour and services. By contrast, materials supplied by the client and used in executing the works contract are includible in the contractor's taxable turnover for turnover tax. The stated result is that the contractor obtained relief on the first two heads, while inclusion of client-supplied materials was upheld. en-us Wed, 02 Sep 2009 00:00:00 +0530 Fri, 23 Jun 2017 09:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172983 Under the Karnataka Sales Tax works contract valuation rules, proportionate depreciation on plant and machinery used in execution is treated as deductible because the levy must remain confined to the value of goods transferred, and the deduction scheme must be read consistently with that limit. Interest charged by clients, postage, telephone and telex charges, and vehicle tax are also deductible as establishment expenses relatable to the supply of labour and services. By contrast, materials supplied by the client and used in executing the works contract are includible in the contractor's taxable turnover for turnover tax. The stated result is that the contractor obtained relief on the first two heads, while inclusion of client-supplied materials was upheld. Case-Laws VAT and Sales Tax Wed, 02 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172983