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TMI Blog2021 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... value has to be considered as per clause (l) of Rule 3(2) - Even the payment of tax under composition scheme under Section 15(1)(b) of the KVAT Act which employs the phrase total consideration of contract necessarily is inclusive of tax collected as there is a deduction provided before the taxable value is determined. The meaning assigned to the phrase value of the contract by the Tribunal that it includes all the amount received whether as taxes or labour cannot be faulted with - there are no perversity or illegality in the order impugned. Revision petition dismissed. - S.T.R.P. No. 296/2018 - - - Dated:- 23-9-2021 - HON BLE MRS.JUSTICE S. SUJATHA AND HON BLE MR. JUSTICE RAVI V. HOSMANI PETITIONER (BY SRI K. HEMA KUMAR, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Aggrieved by the said order, the assessee preferred appeal before the First Appellate Authority. Being unsuccessful, the matter was carried to the Tribunal. The Tribunal has held that the standard rate of deduction on labour and like charges claimed by the assessee is in accordance with law allowing the appeal of the assessee. Being aggrieved, the State has preferred this revision petition. 4. Learned AGA for the appellant State would submit that the taxable turnover of a dealer has to be calculated after deducting the amounts specified under Rule 3(2) of the KVAT Rules. It was submitted that rule 3(2) of the KVAT Rules would be applicable in cases where the labour and like charges incurred by a works contractor are not ascertainabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owards labour charges and other like charges not involving any transfer of property in goods in connection with the execution of works contract including charges incurred for erection, installation, fixing, fitting out or commissioning of the goods used in the execution of a works contract. (m) Such amounts calculated at the rate specified in column (3) of the Table below towards labour charges and other like charges as incurred in the execution of a works contract when such charges are not ascertainable from the books of accounts maintained by a dealer. 8. The relevant portion of the Table annexed to the said Rule is as under:- Sl.No. Type of contract Labour and like charges a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified therein. Clause (h) of Rule 3(2) of the KVAT Rules provides all amounts collected by way of tax under the KVAT Act has to be deducted for determining the taxable turnover from the total turnover. 13. Thus, the total amount paid or payable to the dealer for consideration for transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract including any amount paid as advance to the dealer as a part of such consideration, the entire contract of such value has to be considered as per clause (l) of Rule 3(2). 14. Even the payment of tax under composition scheme under Section 15(1)(b) of the KVAT Act which employs the phrase total consideration of contract necessarily is inclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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