Meaning of “Work contracts”

Case Name : CIT  Vs. Bangalore District Co-Operative Milk Producers Societies Union Ltd.

Citation : [2013] 36 TAXMANN.COM 120/357 ITR 676/261 CTR 442 (KAR.)

Court : Karnataka High Court

Section : 194 TO 206C

Meaning : The explanation ‘works contract’ has a definite legal connotation. What is stated in the section 194c(1) is for ‘carrying out any works’ between the contractor and specified person. The work is also defined to exclude the situation where the material is not supplied by the assessee. The fact that in clause (a), the definition of work as amended subsequently, was not in the statutory book for the relevant years in question, would not be of consequence because of the ratio laid down in cit v. Karnataka power transmission corpn. Ltd. [2012] 208 Taxman 73/21 taxmann.Com 473 (kar.).The definition is clarificatory in nature.

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