Accounts related daily working problem.

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Devender Kumar (Querist)

27 April 2010 1. Why we need of delivery Challan/GR copy. Where written in Law?
2. Why party responsible for charge the lessor Vat charge, Why not we?
3. Where we deduct the tds, Where WCT, and where BOCW.
4. Why we not deduct on Only on Contract deduct TDS, NOT WCT. According to Law what is contract and work contract. A contractor supply the labour for construction.
5. A water supplier is supply the water. Can we deduct the tds for this in which section?

DEEPIKA GOEL

DEEPIKA GOEL (Expert)

27 April 2010 Ans to Q 3:-

TDS is amount to be deducted under Income Tax Act, 1961 on payment or credit whichever is earlier. TDS other name is withholding tax and it is to be deposited by the deductor to the income tax department within the specified time.

WCT is amount charged in case of work contractors i.e. where it is difficult to identify or trace the amount charged as service and material has been put to provide service on which VAt would be chargeable. So to avoid such difficulty, the new provision has been inserted in VAT. In that cases WCT is chargeable.

As far as BOCW is concerned, please specify the full form of it.

Ans to Question 5:-

Water supplier is contractor with whom we did the contract for supplying the water. So it wuld fall in the 194C and TDS @ 2% will be deducted provided the PAN no. is collected from the concerned person.

If PAN no. is not collected, TDS rate wuld be 20%.

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