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TMI Blog2009 (1) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... tted by the awarder from the contractor's bill is to be excluded from the turnover for the computation of tax at compounded rate as provided under section 7(7) of the Kerala General Sales Tax Act, 1963. The assessment involved is for the year 1998-99. The respondent-assessee was engaged in civil construction work and he applied for permission to pay tax at compounded rate under section 7(7) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding on the State only for the assessment pertaining to which Tribunal has passed the orders. In other words, for other years or in the case of any other assessee, the State is free to agitate the matter decided by the Tribunal against it. Section 7(7) which give rise to this revision case is extracted hereunder: "Notwithstanding anything contained in sub-section (1) of section 5 every co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not amount to determination of tax which is a matter of adjudication by the assessing officer wherein the assessee is entitled to plead that recovery does not represent actual tax payable. The scheme for deduction of tax is only a method of recovery of tax in advance on an ad hoc basis and the amount so recovered and remitted by the awarder need not be the actual tax payable. In other words, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, if the contract provides for separate reimbursement of actual tax paid by the contractor over the contract amount, then the same will amount to tax collection under rule 9(1) warranting exclusion from taxable turnover. However, this does not affect tax payable under the compounding scheme which is payable not on the taxable amount but on the whole contract amount which includes the tax re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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