2009 (12) TMI 871

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....hether driving of bore-well is civil construction work entitling the petitioner to pay tax at compounded rate at two per cent under section 7(7) of the Kerala General Sales Tax Act, 1963. We have heard counsel appearing for the petitioner and Government Pleader appearing for the respondent. In the definition of "civil construction work" construction of "well" was not originally included. Howeve....

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.... tax at compounded rate on the turnover of construction of bore-well as "civil construction work". After hearing both sides, we feel the provisions of tax on works contract cannot be applied to bore-wells in the same way it applies to other wells. A well is normally constructed by digging and removing earth to sufficient depth for collection of water. Digging and removing of earth does not invo....

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.... well is protected through protective walls inside or outside, it is civil construction work which attracts tax. If the contract is a combined one, involving digging and construction of wall, then the same is a civil construction work on which tax liability could be settled at compounded rate under section 7(7) of the Act. However, in respect of bore-well normally civil construction is not involve....

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....ied are not civil construction materials such as PVC pipes, GI pipes and installation of motor, etc., then rate of tax at compounded rate under section 7(7) is not applicable. On the other hand, if the construction of bore-well involves construction of any room above it or a motor house or the like, the same should be treated as civil construction work on which tax liability could be settled at th....