2008 (3) TMI 650

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... imposes an obligation upon the purchaser to recover advance value added tax from the consideration payable in respect of transfer of property in goods, but not on account of labour charges charged by a contractor. Rule 29 of the Bihar Value Added Tax Rules, 2005 makes it abundantly clear that while making such deduction of advance tax no deduction shall be made on account of payment pertaining to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o for labour charges for execution of the works contract. The present writ petition is to restrain respondent No. 1 from doing so. The learned counsel for respondent No. 1 has submitted that no sooner bills are re-submitted segregating the amounts payable by respondent No. 1 to the petitioner on account of consideration payable in respect of transfer of property in goods vested in it in execution .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 1 thereupon shall make payment to the extent it is liable to pay the petitioner in respect of such bills and while doing so shall deduct advance value added tax to the extent the same is deductable only on account of valuable consideration payable in respect of transfer of property in goods which vested in respondent No. 1 on execution of the subject works contract. The petitioner shall be entit .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X