Dear Manish Pandey,
The below is for your clarification.
It should be noted that the tax deducted at source cannot be equated with tax liability. Section 22 (3) does not distinguish between works, done for different categories of contractees and different destinations of supply, when it comes to the tax deduction at source. No exemptions from TDS are provided under the APVAT Act. Therefore, exemption from TDS cannot be granted even in cases where the deemed sales i.e., supplies of goods by way execution of works contracts are exempted. Hence the Contractees, who are under the statutory obligation to deduct tax at source in terms of Sec. 22 (3) of the APVAT Act, shall collect tax at source at the appropriate rates. However, in case the tax liability of the works contractors, from whom the tax is deducted at source, is less than the amount of tax deducted at source, the differential amount will be refunded or adjusted against the present or future liability.
Further clarifications, please let me know....