9911796707
TMI Blog2007 (9) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... section 11(1) of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act ) is directed against the order of the Tribunal dated August 18, 2003 by which the Tribunal has confirmed the order of the first appellate authority deleting the penalty under section 8D(6) of the Act. The dealer-opposite party was a foreign company and for the construction of the factory building entered into an agreement with Fiat Engineering, New Delhi. It appears that the opposite party had made some advance payment to the contractor during the year under consideration and deducted one per cent from the payment and deposited the same with the Government Treasury. The assessing authority levied the penalty under section 8D(6) of the Act on the ground t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 8D. Tax deduction from the amount payable to works contractor. (1) Notwithstanding anything contained in sub-section (2) of section 8A, every person responsible for making payment to any dealer (hereinafter in this section referred to as the 'contractor') for discharge of any liability on account of valuable consideration payable for the transfer of property in goods (whether as goods or in any other form) in pursuance of a works contract, not being a building contract of such class or value as may be notified by the State Government in public interest in this behalf, shall, at the time of making such payment to the contractor, either in cash or in any other manner, deduct an amount equal to four per cent of such sum towards pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich it has been held that the provisions of section 8D(1) are not applicable in advance payment. This court held as follows: (see page 75 of STC) 6. Section 8D(1) contemplates that every person responsible for making payment to any dealer for discharge of any liability on account of valuable consideration payable from the transfer of property in goods in pursuance of a works contract shall at the time of making such payment to the contractor deduct amount equal to four per cent. Section 8D(1) does not apply to all payments but applies to only those payments, which are for the discharge of any liability on account of valuable consideration payable for transfer of property in goods. If there was no transfer of property in goods and the payme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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