2026-VIL-978-TEL
  1. Home
  2. 2026-VIL-978-TEL

VAT High Court Cases

Andhra Pradesh General Sales Tax Rules, 1957 - Applicability of Rule 6(3)(i) to Works Contracts spread beyond One Year - Petitioner executed three different works contracts, two of which extended beyond one year. Department assessed the value of goods purchased considering Rule 6(3)(ii) instead of Rule 6(3)(i) applicable for works spread beyond one year - Whether in respect of contracts spread over a period of more than one year, the provision of Rule 6(3)(i) of the APGST Rules, 1957 would be applicable – HELD - The Rule 6(3)(i) merely provides another method of determining the turnover liable to tax for works spread beyond one year, based on the value of goods purchased and supplied or used in the execution of the works contract in that year, instead of the method prescribed in Rule 6(2) of arriving at turnover by deducting certain items of expenditure from gross receipts - The value of goods under Rule 6(3)(i) includes not only the cost of acquisition of goods but also transportation charges to deliver the goods to the situs of the works, cost of establishment relatable to supply of material, other charges incurred till incorporation in the works and profits relatable to the value of goods. The profit element may be estimated considering factors like profits ordinarily made by other contractors in similar works, profits earned by the contractor in previous years and profit percentage norms accepted in the industry - The deemed turnover under Rule 6(3)(i) would exclude profits on labour component and actual cost of incorporation in the works - The issue involved in the present writ petitions is covered by Full Bench decision of High Court of Andhra Pradesh in the case of State of Andhra Pradesh v. Seven Hills Constructions - The impugned order is set aside and the matter is remanded for fresh computation taking into consideration the provision of Rule 6(3)(i) after verifying whether the works executed by the petitioner actually spread over beyond one year – The writ petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?