03 June 2013
Dear Sir, Co belong to Maharasthra and taking up a work contract in delhi from PWD. Co raising invoice with CST 12.5% form maharasthra and pwd deduct tds@2%. And after then co registered in DVAT.
Now my question is wheather TDS 2% amount 1.can co claim tds amount refunded under dvat? 2.can co adjust such tds in maharasthra vat? 3. wheather its dad amount? 4. Any other suggestion
Need advice urgently, Please reply soon Thanks in Advance
04 June 2013
If some bills are raised as a CST contract and 2% TDS is made it will be difficult to adjust them.Once a work is executed in Delhi using local material,it has to be local turnover and not cst turnover. While offering a contract the PWD should have insisted on registration under Delhi VAT rules.The TDS made at Delhi can not be adjusted against tax payable in Maharashtra.If you can do it this way all problems can be set right:Get the CST no or Mahavat TIN no bill rejected by the PWD and replace it by the bill with Delhi VAT TIN no for the same amount.From this side cancel the earlier invoice/bill issued with mahavat TIN and also amend the CST return accordingly, Now the TDS done Delhi PWD will be adjusted in the returns.....mjk
CAclubindia
