L & T PES JV Vs Assistant Commissioner of State Tax (Telangana High Court)
Refund admissible if State of Telangana failed to transfer relevant TDS amount pertaining to State of Maharashtra
Telangana High Court held that TDS deducted on entire amount by both the States i.e. State of Telangana and Maharashtra, however, the said entire TDS amount stands deposited with the State of Telangana. Refund is admissible if the State of Telangana has not transferred the tax liability to the extent of work executed in the State of Maharashtra to the Tax Authorities in the State of Maharashtra
Facts-The petitioner is an unincorporated Joint Venture (J V), comprising of two partners viz., Larsen & Toubro Ltd (L&T) and PES Private Limited. The petitioner has received a contract from respondent No.5 – State of Telangana, for construction of Medigadda Irrigation Barrage at Kaleshwaram, State of Telangana. The project is sponsored by the State of Telangana, but the execution of contract is spread between the States of Telangana and also Maharashtra. That there was a specific Inter-Board Agreement dated 23.08.2016 signed by both Telangana and Maharashtra States. For this purpose a special utility vehicle called as Kaleshwaram Irrigation Project Corporation Limited (KIPCL) i.e., respondent No.4 was formed.
