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2014 (7) TMI 622 - HC - VAT and Sales TaxRate of tax (TDS) on works contract - respondents collected tax at source from the monthly work bills due to the petitioner at the rate of 2.8 per cent instead of 0.36 per cent - estimated value came into existence after the tenderers submitting their respective tenders. In other words, there was no way tenderers knowing the estimated value and the components of the estimated value prior to opening of the tenders - Held that:- Petitioner's case squarely fall under section 22(3) of the A.P. VAT Act and the excess amounts deducted by the second respondent is contrary to the scheme of the Act and unauthorised and hence required to be returned to the petitioner. As a matter of fact, the unauthorised deduction and retention of the monies without making it over to the Tax Department is contrary under section 57(1) of the A.P. VAT Act. Therefore, the respondents are directed to refund the excess amount to the petitioner within four weeks from the date of receipt of this order. - Decided in favour of petitioner.
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