INPUT TAX CREDIT

Sr. No.                                                                                                 Description

1. Input Tax Credit-What it is                       when a taxable person purchases any, goods-

(i)                For resale; or

(ii)              For use in the for manufacture; or

(iii)            For processing; or

(iv)            For packing of taxable goods in the State

He pays certain tax to the purchaser. The tax which he has paid to the purchaser is called the “input Tax Credit” This Input Tax Credit is reduced from the Output Tax payable so that the tax in effect is paid only on the value added part at each stage. This ‘Input Tax Credit” can be claimed whether or not the Taxable person has paid the amount to the seller.

2. Input Tax Credit-Who is entitled              A Taxable person paying VAT is entitled to get the Input Tax Credit in respect all taxable goods. Including Capital Goods.

3. Input Tax Credit-When admissible           Input Tax Credit is admissible only on those goods which are purchased within the State and that too from A Taxable Person. Purchasing the goods from registered person or from unregistered person do not qualify for Input Tax Credit [Section 13(1)]

4. Condition for claiming ITC                        (I) Person claiming ITC should be registered for VAT

                                                                        (ii) Person should be in the concerned business.

                                                                        (iii)Goods must have been further sold

(iv)Possession of original invoice essential

(v)  Accounts are property maintained [Rule 18(b)]

5. Full ITC when admissible                           Full amount of ITC including on capital goods will be provided the gods purchased have further been sold or used in manufacture, processing, etc. [Section 13(1) first proviso, Rule 22]

6. Partial Input Tax Credit-Admissibility      Partial use of goods provide partial Input Tax Credit Capital goods when are used partially for manufacture of taxable goods and partially manufacture of tax free goods or for job work, Input Tax Credit will be available on pro rata basis [rule 19 (1)]

7.Circumstance when the Input Tax            Goods purchased when are sent:-

  Credit on goods purchased shall be             (i) Outside the state  

  Allowed only to the extent by which

  The amount of tax paid in the State of        (ii) In the course of interstate trade or commerce.

  Exceeds four Per cent                                          

                                                                         (iii) Goods declare in schedule H , when are sold                                    in the course of interstate trade or commerce.

(iv)Goods purchased in the course of export out of territory of India.     

(v)Goods purchased for use in manufacturing of taxable goods but sent outside the state       

(vi)Goods purchase for use in packing of taxable goods but sent outside the state.

(vii)Purchase of goods for use in generation, distribution and transmission of electric energy was not captive consumption.

(viii)Branch Transfer

(ix)Input tax credit on furnace oil, transformer oil, mineral turpentine oil, water methanol mixture, naphtha and lubricants shall be allowed only to the extent by which amount of tax paid in the state exceeds four %.

8. Goods on the purchase of which no          (i) Purchase of automobiles by a taxable person in 

    Input tax credit is admissible                           business.

 (ii)Purchases of patrol, diesel, aviation turbine        fuel, liquefied petroleum gas and condensed natural gas by a taxable person not in the business of selling such product-

(iii)Purchase of civil structure and immovable goods or properties by a taxable person.

(iv)Purchase of office equipment and building material by a taxable person not in the business of dealing in such goods.

(v)Purchase of furniture fixtures including electrical fixtures and fitting, by taxable person not in the business of such goods.

(vi)Purchase of air-condition unit, air circulators and refrigeration units by the taxable person not in the business of such goods.

(vii)Purchase of Weigh Bridge, except when installed inside the manufacturing process of taxable goods.

(viii) Input Tax credit on purchase of goods used in manufacture, processing or packing of goods specified in Schedule ‘A’ ( Tax Free)-Not admissible.

(ix) Purchase of goods in generation, distribution and transmission of electrical energy shall not be admissible unless such use in captive purpose.

(x)Purchase of foods, beverage and tobacco products by the taxable person not in the business of selling foods, beverages and tobacco products.

(xi)Invoice which are against the bonafide          transaction-Not admissible to input tax credit.

(xii)Invoice which are doing not contain all the         required information as specified in rule 54.

(xiii)Invoice which has been issued by a person             whose certificate of registration has been cancelled-

(xiv)Goods lying in stock have become tax free.

(xv)Goods lying in stock have become tax free-Using the goods as input for making tax-free goods.

(xvi)Goods purchased during the period of composition (TOT)-Not admissible to input tax credit.

(xvii) Goods Purchased and used for personal consumption-Not admissible to input tax credit.

(xviii) Gifts for personal use or consumption-not admissible to input tax credit [Section 13(5)]

9. Reversal of Input Tax Credit availed                     In the following circumstances, the input tax credit shall not be admissible to a taxable person. Input tax credit if any availed by shall be reversed and paid along with the return submitted:-

(i)  Change of option by a taxable person from VAT to TOT.

(ii)Change of option by a registration person from TOT to VAT.

(iii)Export of goods out of India and claimed    refund of Input Tax credit

(iv)Goods purchased for sale in the State but could not be so sold.

(v)Goods purchased for sale in inter-state trade and commerce, but could not be sold.

 (vi)Goods purchased for export but could not be    exported out of India.

(vii)Goods purchased for the purpose of                    processing but could not be so used.

(viii)Goods purchased for the purpose of processing but could not be used.

(ix) Goods Purchased for packing of taxable goods for sale but could not be so used.

(x) Goods remaining in stock at the time of closure of business.

(xi) Modification on invoice book after issue of debit note.

(xi) Modification on invoice book after issue of credit note.

(xii) Loss of goods-Reversal of ITC availed

(xiii)Goods which are destroyed and are beyond repair.

(xv) Goods which are damaged and are beyond repair.

10. Adjustment of Input tax Credit                            if the amount of input tax credit, is more than the amount of output tax, the same may be adjusted, against the tax liability:-

(i)                Central Sales Tax Act, 1956, if any

(ii)              Against the liability of outstanding tax, penalty or interest.

11. Carrying forward of excess amount                     Excess amount of Input Tax Credit, if any,

       Of Input Tax credit                                              after adjustment under section 15 (2) (3) may be carried over to subsequent tax period.

12. Refund of excess amount of ITC                          Excess amount of ITC, if any, after adjustment may be refunded.

13. Transferability of the ITC                                     Input Tax Credit shall be non-transferable except where the ownership of the business of a person is entirely transferred.

14. Nagetive Input Tax Credit balance                          Input Tax Credit availed deductible.

15. Input tax credit on stock held on                         ITC on stock is admissible if the same was 

       The appointed day (01.04.2005)                       purchased between 1.4.2005 to 31.3.2005. A taxable person is required to submit the details of the stock in a proforma issued by the department within issued by the department within thirty days from enforcement of this new Act.

16. ITC on stock-Who is entitled to get                     A taxable person whose registration has been continued under section 21 of the Punjab Vat Act is entitled to input tax credit in respect of tax paid or payable under the repealed act on goods other than capital goods, lying in stock with him,

17. Period for which the ITC on stock is available    Twelve months prior to the date of appointment.

18. ITC on capital goods held in stock                       ITC on capital goods is admissible provided the person is in the business of resale of such goods and that such stock is out of the purchases made within twelve months prior to the appointment day.

19. Goods eligible for ITC                                               Tax Paid goods prior to the appointed day and are taxable under the new Act are eligible for ITC

20. Input Tax Credit on duplicate invoice                 In form VAT-7 and VAT-8-On receipt of application in form VAT-7, the designated officer shall cross-check the transaction and allow the claim within 60.

21. ITC on goods leviable to Purchase Tax                The ITC on purchase tax is admissible if-

                                                                                         (i) The goods are sold within the state; or

                                                                                                    

                                                                                     (ii)Are used for manufacture or taxable              goods;

                                                                                     (iii) Are have been sold in the course of inter-state trade or commerce.

                                                                                     (iv) Have been sold in the course of export.

22. ITC on stock-Condition of its admissibility         (i) Furnishing of statement of tax paid goods in stock for claiming ITC essential.

(ii)Registration of a person under VAT Act as taxable person to claim ITC on stock essential.

23. ITC on stock-when not admissible              (i) Where the taxable person has claimed deduction from gross turnover under the repealed Act.

                                                                                     (ii) Taxable person has not submitted the statement of tax paid goods.

                                                                                     (iii) Taxable person is not registered under the VAT Act,

                                                                                     (iv)Taxable person is not in possession of sales vouchers.

24. Rate at which ITC held in stock                               ITC on stock held on the appointed day l Is      admissible                                                               be allowed on the basis of-

(i)                The rate of tax prevailing; or

(ii)              On the  day of purchases of such goods

(iii)            On the rate of tax under this Act; whichever is lowest [14 (4)]

25. ITC for purchases from units availing                     Special dispensation for ITC on goods exemption of tax                                                    purchased by a taxable person from an

Exempted unit has been devised. Main Feature of the proposal are as follows.

Turnover-based ITC for purchases made from units availing exemption of tax.

Colures of invoice to be issued by an exempted unit shall exclusive and different from colour of VAT invoice of other taxable persons.

Format of the invoice shall be the same as that of VAT invoice with some change in the column relating to calculation of tax and claim of credit.

Selling dealer i.e. an exempted unit shall specify the selling price of goods.

Subsequent dealer shall claim adjustment of purchases price of such goods when resold.

No adjustment of purchases price by subsequent dealers shall be allowed if the goods are used for any purpose other than resale.

WCT

Works Contract- Clause (zu) U/S 2 of this Act describes this term, “Works Contract” includes any agreement for carrying out, for cash, deferred payment or other valuable consideration, building construction, manufacturing, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.

     

The Supreme Court, in the case of State of Madras Vs Gannon Dunkerley and Co. (Madras) Ltd., reported as (1958)-9-STC-353, AIR-1958-SC-560; held that a ‘Works Contract’ was an indivisible contract, and therefore, the turnover of goods used in works contract could not become eligible to sales tax. By a series of subsequent decisions, the Supreme Court has, on the basis of the decision on Gannon Dunkerley’s Case, held various other transactions which resemble, in substance, transactions by way of sale to be not liable to sales tax.

In order to overcome the adverse effect of this judgment, the Parliament amended Article 366 of the Construction of India by introducing sub-clause (b) of clause (29-A) by the Construction (Forty-Sixth) Amendment Act 1982. This clause states that ‘tax on the sale or purchase of goods’ includes among other things, a tax on the transfer of property in goods involved in the execution of a ‘Works Contract’. By virtue of the Constitution (Forty-Sixth Amendment) Act, 1982 a ‘work contract’ which was an ‘indivisible contract’ during the pre-amendment period, has became a divisible contract, one, for the sale of goods, and two, for supply of labour and services.

WCt v/s services: -

The Works Contract is distinguished from the job works as if a service of job work not having the elements of goods components is not liable to VAT but however the goods have been consumed during the process of job works and then it falls under the definition of Works Contract.

WCT V/S NORMAL SALE: -

Works Contract is not a Normal Sale. In the normal sale, the goods remain same before and after the delivery. However, in Works Contract, the goods before the delivery and after the execution of Works Contract are different. It’s a “deemed sale” rather than “normal sale”.

Literally the word Works Contract thereby means: -

“A Contract or an agreement to do work”

Two things emerge out of the definition of works contract: -

1.      As to how the work performed under contract will be considered as Sale.

2.      How the sale price is to be determined in the case of Works Contract.

The definition of the sale U/S 2(z) (f) constitutes the sub proviso 2 in this context which reads “Sale” with all its grammatical or cognate expressions means any transfer of property in goods for cash, deferred payment or other valuable consideration and includes transfer of property in goods (whether as goods or some other form) involved in the execution of a Works Contract.

“Sale Price” is defined U/S 2(z) (g) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of Works Contract, ‘Sale Price’ means such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for the execution of such Works Contract, the amount representing labour and other charges incurred and profit accrued other than in connection with transfer of property of goods for such execution. Where such labour and other charges are not quantifiable, the sale price shall be cost of acquisition of the goods and margin of profit on them plus the cost of transferring the property in goods and all other expenses in relation thereto till the property in such goods, whether as such or in any other form, passes to the contractee and where the property passes in the different form, it shall include the cost of conversion.

DETERMINATION OF TAXABLE TURNOVER IN CASE OF Works Contract: -

Different courts have suggested how to arrive at a material value from the total contract value. The tax on transfer of property in goods (whether as goods or in some other from) involved in the execution of Works Contract is leviable on the goods involved in the execution of Works Contract. Refer: - (1993)-88-STC-204 (SC) – Gannon Dunkerley V/S State of Rajasthan; (1993)-88-STC-248 (SC) – Builder Association of India V/S State of Karnataka. The value of goods involved in the works contract will have to be determined after taking into account the value of entire Works Contract and deducting therefrom the charges towards labour and services. Refer: - (2007)-7-VST-317 (SC) – State of Jharkhand V/S Voltas Ltd.

Sub Rules (4) and (5) of Rule 15 under Punjab VAT Rules provide guidelines for determining value of goods involved in Works Contract. The value of the goods involved in the execution of works contract, shall be determined by taking into account the value of the entire works contract by deducting there-from the components of payment, made towards labour and service, including-

(a)     Labour charges for execution of the works.

(b)    Amount paid to a sub-contractor for labour and services;

(c)     Charges for planning, designing and architect’s fees;

(d)    Charges for obtaining for hire, machinery and tools used for the execution of the works contract;

(e)     Cost of consumables, such as, water, electricity and fuel, used in the execution of the works contract, the property, which is not transferred in the course of execution of a works contract;

(f)      Cost of establishment of the contractor to the extent, it is relatable to the supply of labour and services;

(g)     Other similar expenses relatable to supply of labour and service and;

(h)    Profit earned by the contractor to the extent, it is relatable to the supply of labour and service.

5.      The amounts deductible under sub-clauses (c) to (h) of sub-rule (4), shall be determined in the light of the facts of a particular case on the basis of the material produced by the contractor.

Determination of Taxable Turnover- Other States: -

Going by levy of VAT on Works Contract in most of the states of India, following options are being used for determination of taxable turnover: -

i.            Deductions of actual non-material charges – Deductions are available for arriving at the material value from the total contract price. Such deductions are specified in the provisions of the State VAT Acts and Rules. Punjab follows this pattern.

ii.            Material Cost Plus Margin – The material value of the contract is determined by adding profit margins to the costs.

iii.            Deduction of standard specified labour charges – The material value is calculated after deducting the labour charges from the total contract value using specified standard labour in the corresponding ACT/Rules of the State. The contractor charges @12.5% VAT on the calculated material value. For example, in Maharashtra for civil works it is 30% for Plant & Machinery 15% for AMCs 40% and for others 25% (Residuary).

iv.            Composition scheme – Under the composition option, the contractor has to pay composition tax on the total contract value and no deduction of labour is available in this option. The rates of composition tax differ from State to State. For example, in Maharashtra, this is 5% on Civil Contracts and 8% on other Contracts.

In the case of Builders Association, the Supreme Court said it was surprised to find the States claiming a right to levy tax on the entire turnover of contract. Only value of goods which were used in the execution of the contract be included. Refer: - (1989)-73-STC-370 (SC) – Builders Association of India V/S Union of India.

CASES OF BUILT OPERATE & TRANSFER: -

The ETC Punjab U/S 85 in the case of M/S Chetek Enterprises Pvt. Ltd., Jalalabad who operated the Firozpur - Fazzilca Road on BOT basis whereby it has been held 35 PHT 96.

“Therefore in order to determine the quantum of deemed sales involved in the BOT project, value of entire works contract can be taken as the total project cost and after deducting there form the above mentioned expenses towards labour & services, we can arrive at the value of goods involved in the execution of the said works contract awarded by way of concession and accordingly, the tax payable can be assessed on this amount of goods involved in the execution of said BOT project-cum works contract.

It is noticed in the Concession agreement that there is a specific mention that “Taxes” means any Indian Taxes on Corporate Income, Sales Tax, Excise Duties, Custom Duties and Local Taxes land any impost of like nature (whether Central, State or Local) charged, levies or imposed on the goods materials, equipment and services incorporated in and forming part of Project High Way, on the construction, operation and maintenance thereof and on the Project Assets.

There are following pre-requests of a sale:-

(a)     Existence Goods

(b)    Transfer of property in goods

(c)     Valuable consideration, cash of deferred

(d)    Buyer competent to contractor

(e)     Seller competent to contractor

In view of the above discussion it is clarified that:-

I.        The sale in the work contract takes place when goods are incorporated in the works. Such goods are taxable at the rates prescribed under various Schedules attracted to the PVAT Act.

II.     Local purchases made by company are eligible for ITC as per Section 13 of the PVAT Act, 2005.

III.   As discussed above, the measure for levy of tax as contemplated in the Gannon Dunkerley case (Supra) is value of goods involved in the execution of work contract. Therefore, the tax will be levied irrespective of source of supply.”

SECTION 27: - TAX DEDUCTION FROM THE AMOUNT PAYABLE TO WORKS CONTRACTOR: -

1.      Notwithstanding anything contained in any of the provisions of this Act, every contractee responsible for making payment to any person (hereinafter in this section referred to as the contractor) for discharge of any liability on account of valuable consideration, exceeding rupees five lac in a single contract payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, shall, at the time of making such payment to the contractor either in cash or in any other manner, deduct an amount equal to two per cent (4% w.e.f January 09, 2008) of such sum towards the tax payable under this Act on account of such contract:

Provided that any individual or Hindu undivided family not registered under this Act, shall not be liable for deduction of such tax.

2.      Any contractor responsible for making any payment or discharge of any liability to any sub-contractor or in pursuance of a contract with the sub-contractor, for the transfer of property in goods (whether as goods or in some other form) involved in the execution whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount, equal to two per cent of such payment or discharge, purporting to be a part  of the tax, payable under this Act on such transfer, from the bills or invoices raised by the sub-contractor, as payable by the contractor.

3.      Every person liable to deduct tax at source under sub-section (1) or sub-section (2), as the case may be, shall make an application in the prescribed manner to the designated officer for allotment of Tax Deduction Number. The designated officer, after satisfying that the application is in order, shall allot Tax Deduction Number.

VAT 26, 25 27 & 28

4.      The amount deducted under sub-section (1) or sub-section (2), as the case may be, shall be deposited into the Government Treasury by the person making such deduction in the prescribed manner and shall also file a return of tax deduction and payment thereof in such form and in such manner, as may be prescribed.

5.      Any deduction made in accordance with the provisions of this section and credited into the Government Treasury, shall be treated as payment towards the tax payable on behalf of the person from whose bills and invoices, the deduction has been made and credit shall be given to him for the amount so deducted on the production of the certificate, in the prescribed form in this regard.

6.      If any contractee or the contractor, as is referred to in sub-section (1) or sub-section (2), as the case may be, fails to make the deduction or after deducting such amount fails to deposit the amount so deducted, the designated officer may, after giving an opportunity of being heard, by order in writing, direct that the contractee or the contractor shall pay, by way of penalty, a sum, equal to the amount deductible under this section, but not so deducted, and if deducted, not so deposited into the Government Treasury.

7.      Without prejudice to the provision of sub-section (6), if any contractee or the contractor, as the case may be, fails to make the deduction or after deducting, fails to deposit the amount so deducted, he shall be liable to pay simple interest at the rate of one and half per cent per month on the amount deductible under this section, but not so deducted and, if deducted, but not so deposited, from the date on which such amount was deductible to the date, on which such amount is actually deposited.

8.      Where the amount has not been deposited after deduction, such amount together with interest referred to in sub-section (7), shall be a charge upon all the assets of the person concerned.

9.      Payment by way of deduction in accordance with sub-section (1) or sub-section (2) shall be without prejudice to any other mode of recovery of tax, due under this Act from the contractor or the sub-contractor, as the case may be.

10.  Where on an application being made by any contractor or sub-contractor, the Commissioner or designated officer is satisfied that no deduction of tax or deduction of tax at a lower rate is justified, he shall grant him such certificate permitting no deduction of tax or deduction of tax at a lower rate, as the case may be. On furnishing of such certificate, the person responsible for deduction of tax shall comply with such certificate.

ITC ADMISSIBILITY IN CASE OF WORKS CONTRACT: -

Both contractor and contractee can avail Input Tax Credit subject to the ‘negative list’ and other provisions of Section 13.

Multiple contracts between same parties, cumulative value more than five lac whether to DEDUCT TDS: -

As per provisions of this section, tax deduction @ 4% is to be made at source from the payments of a contractor, if a single contract exceeds Rs. Five Lac of value. Emphasis is on the single contract of more than rupees five lac. If there are two contracts between the same two parties, each amounting less than Rs. 5Lac but put together exceeds rupees five lac, in such as case contractee is not liable to deduct TDS provided both the contracts are covered by separate agreements.

Material supplied by the contractee to the contractor – whether amounts to sale: -

Whether the materials supplied by the Govt for use in works executed by the contractor(s) constitute sale by the contractee department. The dealer made an item rate tender to the PWD for construction of food grain godowns and ancillary buildings. In that tender, prices of material used for construction including cost of iron, steel and cement were included. The PWD had, however, agreed to supply from its stores the iron, steel and cement and to deduct the prices of the material so supplied and consumed in the construction, from the final bill of the applicant. The Supreme Court held that, there was passing of the property in the goods to the assessee from the PWD……there was a sale which was liable to tax. Refer: - (1989)-72-STC-368 (SC) – N.M. Goel V/S Sales Tax Officer. Also Refer: - (1999)-115-STC-233 – National Thermal Power Corporation Ltd. V/S Additional Commissioner of Sales Tax.

Cooch Behar Contractors Association

V/S

State of West Bengal             9 PHT 404

“Bengal Finance (Sales Tax) Act, 1941, Section 2(g) – Works Contract – Taxable turnover – A sale within the meaning of section 2(g) of the 1941 Act, namely, a transfer of property in goods supplied by the owner/contractee to the contractor for use in the execution of a Works Contract takes place when such goods are actually used in the construction work provided prices of such goods are deducted from or adjusted against bills or dues of the contractor. It is, therefore clear that their value would from part of the contractual transfer price for the purpose of the tax U/S 6D of the Act, goods used in the execution of the works contract stand transferred from the contractor to the contractee at the time the goods are incorporated in the construction.”

liability of real estate developers: -

On the basis of case law reported as K. Raheja Development Corporation V/S State of Karnataka (2005)-141-STC-298 (SC),

K. Raheja Development Corporation

V/S

State of Karnataka           32 PHT 468

“Works Contract – Dealer – Execution of Works Contract by property developer under an agreement with the owners of land – property developer getting the plans sanctioned, constructing the buildings/commercial complexes and selling to the intending purchasers – Actions of the property developer whether the amount of execution of Works Contract and make them dealer for payment of turnover tax – Held, Yes – Not only this, even if an owner of property enters into an agreement to construct for cash, deferred payment or valuable consideration a building or flats on behalf of any body else, it would be Works Contract within the meaning of the term used U/S 21(1) (vi) of the Act. This will amount to transfer of property in goods and liable to tax U/S 21(10 (vi) and 2(1) (u1) of the Karnataka Sales Tax Act, 1957, Section 2(1) (vi) and 2(1) (u1). However, if the agreement is entered into after the flats or unit is constructed, then there would be no Works Contract. But so long as the agreement is entered into before the construction is complete it would be a Works Contract. Karnataka Sales Tax Act, 1957, Section 2(1) (vi) and 2(1) (u1), Haryana VAT Act, 2003, Section 9, Punjab VAT Act, 2005, Section 27.”

M/S SMV Agencies engaged in construction and sale of residential flats buildings and infrastructure facilities, purchases land on outright sale basis & starts constructing flats. At the same time, it starts booking for the allotment of the flats. The payment taken is an advance payment for the sale of flat which would be sold only after it is complete. Till the sale deed is registered & possession is given, the prospective buyer does not become owner of the property in any manner. Held that so long as agreement is entered into before the construction is complete, it would be a Works Contract and transfer of property in goods involved in the execution of works contract constitutes a sale. In L & T 32 PHT 667 (S.C), Case of similar facts referred to larger bench of Supreme Court

Inter-state purchase against ‘c’ form by a works contractor: -

A person engaged in works contract of building construction is a manufacturer and entitled to be granted registration under the CST Act and to issue ‘C’ Forms for effective Inter-State purchases. Refer: - (2008)-14-VST-54 (Ker) – DLF Laing O’ Rourke (India) Ltd. V/S State of Kerala.

determination of turnover in case of inter-state works contracts: -

In view of section 13 (3) of the CST Act, 1956 so long as a Central Government does not make rules under the Central Sales Tax Act, for the determination of the turnover in relation to inter state works contract, determination of the turnover may be carried out by the assessing authority in a state in terms of the rules made by the State Government.   

Taxability on Goods Brought from out of State of Punjab

PUNJAB & HARYANA COURT HIGH COURT – ECE INDUSTRIES LTD. 31-PHT-66: -

If goods brought from out of state of Punjab and fitted as it is, then no Tax under WCT leviable

Inter State Purchase – M/S M. Paul Babuta Engg Cont 32 PHT 212 Purchase from Registered & Unregistered dealer to be distinguished have remembered.