TaxTMI 
TaxTMI 
2016 (8) TMI 1116
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....ting TDS from the bills of the contractors, the petitioner preferred an appeal to the Appellate Deputy Commissioner and, on their appeal being rejected, they have invoked the jurisdiction of this Court under Article 226 of the Constitution of India. Sri Karan Talwar, learned counsel for the petitioner, would fairly state that, while the petitioner did not raise any contention, regarding their failure to deduct TDS from the bills of the contractor, before the assessing authority, they had put forward elaborate submissions, both oral and written, before the appellate authority, contending that the turnover, which was subjected to tax for failure to comply with Section 22 (3) of the Act, included Inter-State works contracts and pure service c....
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....ity, regarding payment of tax on this turnover by the contractors, should be absolved of their tax liability as VAT, on the deemed sale of goods involved in the execution of local works contracts, had been levied on the contractors. While submitting that, in terms of Rule 18 (1) (a) of the Rules, the contractor ought to have made an application to the Assistant Commissioner for a provisional assessment, and their failure to do so obligated the petitoner to deduct tax at source in terms of Section 22 (3) of the Act, Sri S. Suri Babu, learned Standing Counsel for Commercial Taxes, would fairly state that, as the appellate authority had considered the objections raised by the petitioner, the matter could be remanded to the assessing authority....
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.... to deduct TDS on inter-state works contracts or pure service contracts, as the jurisdiction of the respondents to levy tax under the Act is only on Intra-State works contracts, and not on Inter-State works contracts or pure service contracts. We are, however, not impressed with the submission of Sri Karan Talwar, learned counsel for the petitioner, that failure of the contractor to furnish Form-501-A to the contractee, in terms of Rule 18 (1) (bc) of the Rules, absolved the petitoner of their obligation to deduct tax at source. On a conjoint reading of Rules 18 (1) (bc) and (bd), it is evident that the contractor is required to obtain Form-501-A from the Assistant Commissioner, and supply the same to the contractee; the contractee is requ....