Delhi metro tds and wct

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anuj (Querist)

05 January 2012 dear sir

our company done contract with delhi metro for Rs 100000/- and they issued cheque of Rs 85000/- after deduction of

CST 2%- 2000
Dvat/TDS 2% - 2000
Labour Cess 1%-1000
Security Deposit-10000

please suggest me:
1) how i will pass entry of the above in our books
2) how can i claim dvat/TDS as deducted by them
3)whether i have to issue bill of job work and of what amount if material used amount is 60000/-

please suggest me..its very urgent

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

06 January 2012 Mr. Anuj,
They should not do two deductions viz,CST @ 2% and again VAT @ @%, because you will be liable for any of them only.If you are in Delhi DVAT TDS is to be done @ 2%. If you are from out side Delhi area then no TDS to be done, because the TDS amount will not go to respective government of your state.If you are in Delhi, get a certificate for VAT tds and claim tax deduction in your returns. A consolidated bill is enough.
MJK

Message likes : 1 times

anuj

anuj (Querist)

07 January 2012 thanks sir....i am from punjab,they made us payment after deducting tds and vat,and i have send them letter for the same thrice.but still no reply from their side.

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