https://www.taxtmi.com/caselaws?id=331732 Under the VAT scheme, deemed sale tax applied only to intra-State works contracts and did not extend to inter-State works contracts or pure service contracts. Rule 18 required the contractor to obtain and circulate Form 501-A for adjustment of TDS, but that mechanism did not remove the contractee's obligation under Section 22(3) to deduct tax at source from payments within the Act. Because the record did not conclusively show whether the turnover included inter-State or service components, or whether the same local works contract turnover had already suffered tax, factual verification was necessary. The assessment was set aside to the extent required and the matter remanded for fresh consideration. en-us Tue, 09 Feb 2016 00:00:00 +0530 Wed, 31 Aug 2016 09:54:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331732 Under the VAT scheme, deemed sale tax applied only to intra-State works contracts and did not extend to inter-State works contracts or pure service contracts. Rule 18 required the contractor to obtain and circulate Form 501-A for adjustment of TDS, but that mechanism did not remove the contractee's obligation under Section 22(3) to deduct tax at source from payments within the Act. Because the record did not conclusively show whether the turnover included inter-State or service components, or whether the same local works contract turnover had already suffered tax, factual verification was necessary. The assessment was set aside to the extent required and the matter remanded for fresh consideration. Case-Laws VAT and Sales Tax Tue, 09 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331732