When the work is executed and sales accounted for and offered to tax in the year, deduction claimed for the corresponding amount of works contract tax incurred on such erection sales or works receipts is allowable. (AY. 2004-05)
Dy. CIT v. Stewarts and Lloyds of India Ltd. (2019) 74 ITR 677 (Kol.)(Trib.)
S. 145 : Method of accounting-Works contract tax(TDS)-When sale is offered corresponding amount of works contract is allowable as deduction. [S. 37(1)]