Turnover from works contract should be assessed as per rule 8(5) of TNVAT Rules, 2007

VBHC Chennai Value Homes Private Limited Vs Assistant Commissioner(ST) (Madras High Court)

Madras High Court held that the proper method for assessing the turnover from works contract is as per Rule 8(5). Accordingly, it was directed to redone de novo applying the methodology set out under rule 8(5) of the Tamil Nadu Value Added Tax (TNVAT) Rules, 2007.

Facts-

The impugned assessments relate to the periods 2011-12, 2012-13 & 2013-14 and have been framed in terms of the provisions of the Tamil Nadu Value Added Tax Act, 2006 all dated 14.03.2019. The assessments are assailed on the basis of the methodology adopted in computing the value of the works contract under Section 5 of the Act.

The petitioner is aggrieved by the methodology adopted in the computation of tax on turnover, and draws attention to Rule 8(5) of the Tamil Nadu Value Added Tax Rules, 2007.

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