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The Tax Publishers ABC India Ltd. v. ACIT [ITA No. 2078/Kol/2013, dt. 11-5-2016] : 2016 TaxPub(DT) 2544 (Kol-Trib) TDS applicability on no VAT charged invoices *Facts:* Assessee had purchased and installed/commissioned two windmills from Suzlon Ltd. and Enercon Ltd. TDS was done on the installation and commissioning work. Assessing Officer on noticing that no VAT was charged on the windmill converter, took a stand that no TDS was done thus held assessee in default. It was a works contract was his plea. On further appeal Commissioner (Appeals) held that there is no TDS on purchase of windmill converter thus the assessee was not in default. On further appeal: Held in favour of the assessee that the purchase of windmill converter was pure purchase of material/goods thus outside the scope of TDS. It was found out on facts that the sale was exempt under VAT and under sale of C forms as well it was exempt, thus there was no VAT on the invoices. This by itself cannot trigger TDS provisions of a works contract. The fact of the assessee ensuring separate contracts for the sale and the service also came to the rescue of the assessee.

The Tax Publishers

ABC India Ltd. v. ACIT [ITA No. 2078/Kol/2013, dt. 11-5-2016] : 2016 TaxPub(DT) 2544 (Kol-Trib)

TDS applicability on no VAT charged invoices

Facts:

Assessee had purchased and installed/commissioned two windmills from Suzlon Ltd. and Enercon Ltd. TDS was done on the installation and commissioning work. Assessing Officer on noticing that no VAT was charged on the windmill converter, took a stand that no TDS was done thus held assessee in default. It was a works contract was his plea. On further appeal Commissioner (Appeals) held that there is no TDS on purchase of windmill converter thus the assessee was not in default. On further appeal:

Held in favour of the assessee that the purchase of windmill converter was pure purchase of material/goods thus outside the scope of TDS.

It was found out on facts that the sale was exempt under VAT and under sale of C forms as well it was exempt, thus there was no VAT on the invoices. This by itself cannot trigger TDS provisions of a works contract. The fact of the assessee ensuring separate contracts for the sale and the service also came to the rescue of the assessee.