MVAT TDS

This query is : Resolved 

21 April 2010 Hello friends

plz explain me following
When should a person deduct TDS(MVAT)

and secondly

A works contractor sub lets a contract with material to another contractor. Should he deduct MVAT TDS from payment.

Thank You

27 April 2010 Dear, Please refer to Notification No. VAT-1505/CR-123/Taxation-1 Dated 1-4-2005. 2% TDS from registered dealer and 4% from URD dealer for contract payments above Rs.5 Lakhs.

TDS not applicable on contracts payments between Principal contractor and sub contractor.

Thanks.




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