Category: Pre-GST

ArticlePre-GST

Supreme Court: Turnover of Sub-Contractor to be ducted from Main Contractor’s VAT Turnover for Avoidance of Double Taxation

byCA Bimal Jain

The Hon’ble Supreme Court in the case of Authority for Clarification and Advance Rulings, Gandhinagar, Karnataka & Anr. held that principal contractors, under Section 15 of the Karnataka VAT Act, 2003 for the period prior to March 1, 2006, are entitled to deduct amounts paid to registered sub-contractors from their total consideration for works contracts, when computing tax liability under the composition scheme, provided such sub-contractors have accounted for and paid tax on those amounts.

ArticleGST ArticlePre-GST

No dispute can be raised on Export of Services Contractual Relationship Governs Taxability, and Not Location of Beneficiaries in India

byCA Bimal Jain

The Hon’ble Supreme Court in the case of Commissioner Of Service Tax-III, Mumbai held that the services provided by the Respondents [Assessees (Taxpayers)] were rightly held to be exported outside India and hence not liable to service tax under the Export of Service Rules, 2005, as the twin conditions of recipient location outside India and receipt of payment in convertible foreign exchange were satisfied.