2008 (3) TMI 650

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....5. Section 41 of the said Act imposes an obligation upon the purchaser to recover advance value added tax from the consideration payable in respect of transfer of property in goods, but not on account of labour charges charged by a contractor. Rule 29 of the Bihar Value Added Tax Rules, 2005 makes it abundantly clear that while making such deduction of advance tax no deduction shall be made on acc....

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....sfer of property in goods but also for labour charges for execution of the works contract. The present writ petition is to restrain respondent No. 1 from doing so. The learned counsel for respondent No. 1 has submitted that no sooner bills are re-submitted segregating the amounts payable by respondent No. 1 to the petitioner on account of consideration payable in respect of transfer of property....

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.... 29 of the said Rules. Respondent No. 1 thereupon shall make payment to the extent it is liable to pay the petitioner in respect of such bills and while doing so shall deduct advance value added tax to the extent the same is deductable only on account of valuable consideration payable in respect of transfer of property in goods which vested in respondent No. 1 on execution of the subject works con....