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QUERY RECEIPT NO.
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1. How do we define a works contrcat? Alternatively, what is a works contract?
READ and REACT QUERY - 1
2. How do we define a sale for the purpose of VAT?
READ and REACT QUERY - 2
3. 1. WCT applicable in civil works in U. P. i.e. 2% or 4% applicable. 2. Liability of contractee( limited company) to deduct from contractor bill. 3. WCT regd. required by contractee ( limited company) to deduct wct or regd dealer in U. P. having valid TIN no. can deduct wct.
READ and REACT QUERY - 6
4. Contractor A, in State X, enters into a works contract with contractee B for building of residential apartments in the same State X. As per contract, the contractor has to incorporate certain goods in apartments bought from a particular vendor C of State Y. Such goods, before they are purchased, will be approved by the contractee. Contract also provides that contractor will not be at liberty to divert goods approved by the contractor for any other purpose. Contractor places purchase order with vendor C for inter-state purchase of goods subject to condition of approval of goods before the same are dispatched to the contractor. The contractee, after examining the goods, gives its approval. The contractor receives such goods dispatched by the ex-State vendor and thereafter incorporates such goods in the works contract. In the case, there are two inter-state sales. First inter-state sale is by vendor to contractor and second inter-state sale is by contractor to contractee in execution of the works contract. My query is: which State is competent for levying tax on inter-state sale by contractor A to contractee B? Alternatively, in which State contractor is required to submit his return of turnover and tax in respect of sale by it to contractee B?
READ and REACT QUERY - 9
5. Whether “export” and “import” defined in section 2 of the Special Economic Zones Act, 2005 are same as “sale or purchase of goods in the course of export of the goods out of the territory of India” and sale or purchase of goods in the course of import of the goods into the territory of India” respectively as defined in section 5 of the Central Sales Tax Act, 1956?
READ and REACT QUERY - 10
6. The provisions of the Special Economic Zones Act, 2005 (SEZ Act, 2005) have been given overriding effect over provisions of all other Acts. What are the practical implications of such a provision in relation to tax leviable under the Central Sales Tax Act, 1956 and the under the State VAT laws?
READ and REACT QUERY - 11
7. The Special Economic Zones Act, 2005 (SEZ Act, 2005) provides for granting exemption from levy of tax on inter-state sales made to SEZ entrepreneurs and the Developer of SEZ. SEZ entrepreneurs are of following three categories: (i) Dealers carrying on business of purchase or sale or both, of goods; (ii) Service providers; and (iii) Dealer-cum-service providers. The Central Sales Tax act, 1956, in relation to SEZ, provides for granting exemption from levy of tax on inter-state sales made to registered dealers, subject to the condition that the selling dealer obtains declaration in Form I from SEZ dealer and furnishes such Form before the assessing authority. .In view of the provisions of the Central Sales Tax Act, 1956, following inter-sate sales are liable to tax: (i) inter-state sale made to a SEZ dealer where SEZ dealer is not registered dealer under the Central Sales Tax Act, 1956; (ii) inter-state sale made to a service provider located in SEZ; (iii) inter-State sale of any goods made to a registered dealer of SEZ where Registration Certificate of SEZ dealer does not cover such goods; (iv) inter-state sale of any goods where such sale is made to Developer of SEZ. Whether, due to overriding effect of the SEZ Act, 2005 over the Central Sales Tax Act, 1956 provisions, sales as referred to above in clauses (i), (ii), (iii) and (iv) shall also be exempt from levy and payment of tax under the Central sales Tax act, 1956?
READ and REACT QUERY - 12
8. For the purpose of levy and collection of tax under the Central Sales Tax Act, 1956, the Parliament, in sub-section (2) of section 9 of the said Act, has empowered the authorities empowered under the general sales tax law of the State, for assessment and collection of tax. The Special Economic Zones Act, 2005 has been given overriding effect also over the Central Sales Tax Act, 1956 Inter-state sales to SEZ entrepreneurs and Developer have been exempted under the SEZ Act, 2005. Whether authorities empowered for making assessment of central sales tax, while making assessment, will be competent for exercising powers under the SEZ Act, 2005?
READ and REACT QUERY - 13
9. Where a dealer whose unit is located in some SEZ makes- (i) purchases of goods from another dealer of same SEZ or another SEZ within the same State; (ii) sales of goods to a dealer of same SEZ or to a dealer of any other SEZ within the same State; (iii) purchases of goods from a dealer of Domestic Tariff Area of the same State in which SEZ is located; (iv) sales of goods to any dealer of Domestic Tariff Area of the same State in which SEZ is located; or where a developer of any SEZ, makes purchases of goods from a dealer of - (i) same SEZ or another SEZ within the same State; (ii) Domestic Tariff Area within the same State, Whether such purchases and sales will be exempt from levy of tax under the State VAT law where the State Government has not issued any notification for granting exemption on such sales and purchases?
READ and REACT QUERY - 14
10. Territory of India has been defined in the Constitution of India. Article 286 of the Constitution has required the Parliament to formulate principles by enacting law for determining when a sale or purchase shall be deemed in the course of export of the goods out of and in the course of import of the goods into, the territory of India. The Parliament, in section 5 of the Central Sales Tax Act, 1956, has defined such expressions. Can the Parliament, without amending the Constitution, make a provision to exclude certain specified area, from the territory of India in the sense it has been used in section 5 of the Central Sales Tax Act, 1956?
READ and REACT QUERY - 15
11. Whether words “export” and “import” used in section 5 of the Central Sales Tax Act, 1956 are to be given same meaning as assigned to them in section 2 of the Special Economic Zones Act, 2005?
READ and REACT QUERY - 16
12. Except where a sale or purchase falls in the category of sales or purchases in the course of inter-state trade or commerce, any sale or purchase, of goods except newspapers, which concludes within the State, the State Legislature fully competent for levying tax on such sale and purchase. Supposing that the Parliament, by an Act, declares certain specified territory of a State as foreign territory, whether declaration, of such territory as a foreign territory, in any way, curtails the law making powers of the State Legislature? Whether law made by the State Legislature ceases to apply in such area, of the State, declared as foreign territory?
READ and REACT QUERY - 17
To be continued ...