Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2009 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (6) TMI 960 - KERALA HIGH COURTDepreciation in the computation of taxable turnover for works contract of the respondent for the year 1997-98 - Held that:- In the absence of any specific provision in section 5C, depreciation on machinery or tools is not eligible for any deduction in the computation of taxable turnover on works contract. Besides this “charges for obtaining on hire or otherwise” in sub-clause (c)(ii) can only mean charges paid for obtaining machinery or tools under any other arrangement other than hire. In other words, if the charges are paid on any other terms, i.e., other than on hire arrangement for availing of the facility of machinery and tools, then only such charges are eligible for deduction, which certainly does not include depreciation because notional expenditure in the form of amortisation of cost of machinery and tools owned by the contractor is not visualised in section 5C(1)(c)(ii) of the Act. Sales tax revision allowed.
|