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2009 (3) TMI 925 - HC - VAT and Sales TaxDeduction of tax at source at a uniform or flat rate - Held that:- Since no uniform rate has been prescribed in respect of the goods used in the "works contract", it clearly follows that the deduction of tax, at the rate of 12.5 per cent, in terms of section 47A and the impugned notification issued by the respondents, are contrary to section 4 and, hence, the same are liable to be struck down. Also when section 4 has not provided for any separate rate of tax in so far as the goods used in the execution of works contract is concerned, the provisions of section 47A of the Act of 2005 providing for deduction at source, at the rate of 12.5 paise in the rupee, are contrary to section 4 of the Arunachal Pradesh Goods Tax Act, 2005, and, therefore, the same are, as rightly contended on behalf of the petitioner, ultra vires and illegal and liable to be struck down. Writ petitions stand allowed and the impugned provisions of section 47A of the Act, to the extent that the same permit deduction at the flat rate of 12.5 per cent irrespective of the "taxable turnover", are hereby set aside and quashed.
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