https://www.taxtmi.com/caselaws?id=754002 Under the Tamil Nadu General Sales Tax Act, a contractor who assigns a works contract to a registered sub-contractor cannot be denied deduction merely because the sub-contractor's turnover was not shown in the sub-contractor's return. The Court applied Article 366(29-A)(b) and the definitions of taxable turnover and total turnover to hold that, once the work is assigned, the contractor no longer executes that portion of the contract and the taxable transfer arises in the sub-contractor's hands. Payments made to the sub-contractor were therefore excluded from the contractor's total turnover, and the proviso was read down to that extent, leaving the Revenue free to proceed against the sub-contractor if tax remained unpaid. en-us Tue, 23 Apr 2024 00:00:00 +0530 Sat, 15 Jun 2024 08:19:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754002 Under the Tamil Nadu General Sales Tax Act, a contractor who assigns a works contract to a registered sub-contractor cannot be denied deduction merely because the sub-contractor's turnover was not shown in the sub-contractor's return. The Court applied Article 366(29-A)(b) and the definitions of taxable turnover and total turnover to hold that, once the work is assigned, the contractor no longer executes that portion of the contract and the taxable transfer arises in the sub-contractor's hands. Payments made to the sub-contractor were therefore excluded from the contractor's total turnover, and the proviso was read down to that extent, leaving the Revenue free to proceed against the sub-contractor if tax remained unpaid. Case-Laws VAT and Sales Tax Tue, 23 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754002