2023-VIL-651-MAD
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VAT High Court Cases

Tamil Nadu VAT Act, 2006 - Section 5(1) - Works Contract – Taxable turnover - Deduction for determining the taxable turnover in the case of Works contract under Rule 8(5) of the TNVAT Rules, 2007 – assessee estimated taxable turnover has been arrived by deducting 30% towards labour charges and like charges from the total contract income reported in the Profit & Loss Account – petition seeking refund of amount which is said to have been deposited by the Greater Chennai Corporation as TDS while paying the amounts to the petitioner under Section 13 of the TNVAT Act, 2006 – Petitioner case that respondent has wrongly determined the taxable turnover under Rule 8(5)(d) of the TNVAT Rules, 2007 r/w Section 5 of the TNVAT Act, 2006 - HELD - If such amounts are not ascertainable from the Books of Account maintained and produced by the dealer before the Assessing Officer, deduction has to be allowed only at the specified percentage in the table to the aforesaid Rule - As far as Civil Works Contract is concerned, deduction is to be made at 2% - the petitioner has executed that on the works contract for the Greater Chennai Corporation and the Greater Corporation of Chennai, deducted tax at source which represented 2% of the total amount payable to the petitioner by the GCC - When law mandates a particular thing to be done in a particular manner, then it has to be done in that manner - This Principle will apply for determination of taxable turnover in the works contract under Rule 8(5) of the TNVAT Rules, 2007 - The petitioner cannot arrive at the taxable turnover arbitrarily without giving particulars of the value of the goods and value of the services and other items to claim deduction involved to arrive at an arbitrary taxable turnover contrary to scope of Rule 8(5) of the TNVAT Rules, 2007 by merely adding 15% to the value of the purchases. The petitioner was duty bound to give particulars - Since, it is the case of the petitioner that few more TDS certificate have been issued to the Petitioner by the Greater Corporation of Chennai, the petitioner is directed to furnish the same to the respondent - respondent is directed to issue a corrigendum to the impugned order by revising the tax liability after adjusting the TDS certificates - petitioner shall thereafter file an appeal before the Appellate Authority under the provisions of the TNVAT Act, 2006 who shall thereafter dispose of the appeal on merits and in accordance with law - The writ petition is dismissed
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