One of the party is selling the Product to NHAI for construction of roads on which NHAI is deducting the TDS according to the rule of juridiction of state.
The party has not charged the CST on the same as per the contract agreement with NHAI and the party is also not a registered dealer of the state where supplies the material. However the party as per contract construct some of the item in the different state.
I wants to know how to show this amount in SECTION O of Form 704.
Your head line of the query says " Inter State Works Contract", whereas as per details provided by you, it appears that you are only a supplier to NHAI.
In this context, I would like to submit followings:-
01. If it is an inter state sale or sale in course of inter state trade & commerce, I think, NHAI is not authorised to deduct any TDS on behalf of the State Govt. (Pl. refer TDS related sections of ut state). Tax is leviable in the state of origin.
02. If it is an inter state works contract, tax on transfer of property in goods is leviable in the state in which the work was executed.
03. I dont know, why it is being said that the dealer supplying from other state is bound to be registered in local state. Even in Assam, section 47(4) speaks in the same line. Is it not an obstacle to right to do inter state trade and commerce?
CAclubindia
