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2020 (2) TMI 117 - HC - VAT and Sales TaxLevy of works contract tax - requirement of obtaining Exemption Certificate from the sales tax authority as applicable in case works contract tax - HELD THAT:- The activity undertaken by the Petitioner attracts central sales tax under the provisions of the Central Sales Tax Act, 1956. The definition of the expression “sale” in 2 (g) includes “works contract”. Such sale attract central sales tax under the provisions of the aforesaid Act alone. There is no mechanism provided for any exemption or for payment of such tax liability on reverse charge basis by the recipient under the scheme of the aforesaid Act. Since the work order was placed on the Petitioner’s Head Office by the Fourth Respondent, it attracts tax under the provisions of the said Act only. Therefore, tax if any is payable by the Petitioner’s Head Office at Hyderabad alone. The work order is outside the purview of the Tamil Nadu VAT Act, 2006 unless supply of goods were made from Tamil Nadu. Therefore, the Third Respondent was justified in refusing to grant certificate to the Petitioner. Fourth Respondent was also not obliged to deduct tax under the provisions of the Tamil Nadu Value Added Tax Act, 2006 and remit the same - petition disposed off.
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