Please clarify the changes in commercial Taxes with effect from 1st Aug2008,in Karanataka state, one of Point(12th Point) "Contractors Purchasing iron & Steel, Hardware,timber,plywood & Similar goods are liable to deduct tax at source",
Please clarify the Point & what is the process how to follow the point
22 September 2008
any dealer who purchases those notified goods from registered dealers for use of them in execution of civil works contract liable to deduct tax at the rate under section 4 of the kvat act, based on tax invoice issued by the dealer.
the said taxes to be paid in form vat-127 and certificate to be issued in from vat-161 within 15th the subsequent month. certificate in form vat-161 to be obtained from department
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