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AP VAT- New VAT law doesn't allow exemption granted under old sales tax law.
AP VAT- New VAT law doesn't allow exemption granted under old sales tax law.
Assessee, contractor awarded a work contract for 5 years by Govt. of Andhra pradesh under a concession agreement dated 17-9-2004 exempted from sales tax. Meanwhile, a new VAT law was introduced under which no relaxation was given to assessee. Thus, VAT Act unlike 1957 Act did not confer any power on Government to grant exemption, assessee was statutorily obligated to deduct tax at source from running account bills of its sub-contractor .-007557
1. Assessee, contractor awarded a works contract by the State Government of Andhra Pradesh [State Government] for construction and development of the Krishnapatnam Deep Water Port in Nellore District.
2. State Government of Andhra Pradesh, under a concession agreement dated 17-9-2004, had granted exemption to assessee.
3. Meanwhile, new VAT scheme was introduced under which no relaxation was given to assessee.
4. HELD- High Court concluded that assessee was statutorily obligated to deduct tax at source from running account bills of its sub-contractor.
5. since VAT Act unlike 1957 Act did not confer any power on Government to grant exemption. [In favour of Revenue]
Case Reference- Krishnapatnam Port Company Ltd. v. Govt. of AP, Hyderabad
HIGH COURT OF ANDHRA PRADESH
[2015] 58 taxmann.com 249 (Andhra Pradesh)
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