Tax Deduction at Source on Gas Transportation Charges paid by the purchasers of Natural gas to the sellers of gas. - Purchase and sale of gas. Transportation of gas is only a part of the entire sale transaction

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.... of gas. Transportation of gas is only a part of the entire sale transaction Circular No. 9/2012 Dated 17-10-2012 Representations have been received from various sections of the Industry on the difficulties faced in the matter of Tax Deduction at Source on Gas Transportation Charges paid by the purchasers of Natural gas to the sellers of gas. 2. The Hon'ble Gujarat High Court in the case of C....

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....ce of such a contract. There was a clear understanding of the parties that the ownership of gas would pass on to the buyer at the delivery point which clearly shows that transport of gas by the seller was a step towards execution of contract for sale of gas and there was no contract for carriage of goods. The Court added that Transportation of gas was only in furtherance of contract for sale of ga....

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.... transports the gas to the purchaser till the point of delivery, where the ownership of gas to the purchaser is simultaneously transferred, the manner of raising the sale bill (whether the transportation charges are embedded in the cost of gas or shown separately) does not alter the basic nature of such contract which remains essentially a 'contract for sale' and not a 'works contract' as envisage....