https://www.taxtmi.com/caselaws?id=389173 Advance payments received under a works contract could not be taxed as turnover merely because the Explanation to Rule 3 of the Karnataka Value Added Tax Rules deemed them includible at the commencement of execution. The earlier position noted in the text was that the Explanation conflicted with Section 4(1)(c) of the Karnataka Value Added Tax Act and Article 366(29A)(b) of the Constitution, and was therefore unconstitutional. On that basis, the reassessment taxing the advance receipt could not be sustained to that extent. The matter was remitted to the assessing authority for fresh consideration after hearing the assessee and in light of the governing legal position. en-us Tue, 05 Nov 2019 00:00:00 +0530 Tue, 03 Dec 2019 10:11:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=389173 Advance payments received under a works contract could not be taxed as turnover merely because the Explanation to Rule 3 of the Karnataka Value Added Tax Rules deemed them includible at the commencement of execution. The earlier position noted in the text was that the Explanation conflicted with Section 4(1)(c) of the Karnataka Value Added Tax Act and Article 366(29A)(b) of the Constitution, and was therefore unconstitutional. On that basis, the reassessment taxing the advance receipt could not be sustained to that extent. The matter was remitted to the assessing authority for fresh consideration after hearing the assessee and in light of the governing legal position. Case-Laws VAT and Sales Tax Tue, 05 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=389173