2016-VIL-226-PAT
M/s S & P INFRASTRUCTURE DEVELOPERS PVT LTD Vs THE STATE OF BIHAR
Bihar Value Added Tax Act, 2005 – Section 41 and Rule 29 of the Bihar Value Added Tax Rules, 2005 – execution of the works contract – deduction of tax – refund claim of excess amount deducted from running account bills – appellant seeks restraining authorities from making further deduction of sales tax from the gross amount
- HELD – the authorities directed to strictly comply with the provisions of Section 41 of the Bihar VAT Act and Rule 29 of the Bihar VAT Rules in the matter of making deduction and wherever the details were provided to them by the petitioner-contractor or were available to them then they were obliged not to make deduction with regard to the heads mentioned therein and the TDS was to be deducted with respect to the remaining part of the bills
- It is not open to any person deducting tax at source under the Bihar VAT Act to do so otherwise than directed and doing so would be a clear attempt to override the direction of this Court – no certificate is required for not making deductions with regard to such part of the transaction as does not involve any transfer of property and there is no question of deduction on account of payment of labour charge and the person making deduction is obliged not to make deduction with respect to the part of the amount which does not relate to transfer of property, service charge, etc. enumerated in detail in Rule 29 of the Rules
- Impugned letter of the Accountant General (Audit), Bihar is quashed – assessee writ application is allowed