Sec 31 of mvat act
This query is : Resolved
CA SUMIT SAPRA
(Querist)
19 June 2012
OUR CLIENT TAKES SERVICES OF A WORK CONTRACTOR. IT CHARGES BASIC AMMOUNT (SAY 500000)+ SERVICE TAX (SAY 15000)+ vat (SAY 20000) TOTAL 535000/-.
NOW MY QUERY
ARE WE LIABLE TO DEDUCT WCT
IF YES THEN ON WHAT AMOUNT OUR CLIENT SHOULD DEDUCT WCT.
NOW MY QUERY
ARE WE LIABLE TO DEDUCT WCT
IF YES THEN ON WHAT AMOUNT OUR CLIENT SHOULD DEDUCT WCT.
19 June 2012
1. The TDS provisions are applicable only to specified employers.
2. The tax is required to be deducted only in such cases, where payment to a dealer (contractor) is Rs. 5,00,000/- or more during a year.
3. There are provisions for reduced rate of deduction or no deduction certificate, granted by the Commissioner, on an application, in Form 410, made by the concerned dealer (contractor).
4. A contractor, awarding sub-contracts, is not required to deduct TDS from such sub-contractor.
5. TDS provisions are not applicable in respect of works contract liable to tax under the CST Act.
2. The tax is required to be deducted only in such cases, where payment to a dealer (contractor) is Rs. 5,00,000/- or more during a year.
3. There are provisions for reduced rate of deduction or no deduction certificate, granted by the Commissioner, on an application, in Form 410, made by the concerned dealer (contractor).
4. A contractor, awarding sub-contracts, is not required to deduct TDS from such sub-contractor.
5. TDS provisions are not applicable in respect of works contract liable to tax under the CST Act.
CA SUMIT SAPRA
(Querist)
19 June 2012
Sir
I want to know specifically that whether we should deduct wct and on what amount because the work contractor has charged vat . so i Want to know that we should deduct wct at 2%.
Is it right.
I want to know specifically that whether we should deduct wct and on what amount because the work contractor has charged vat . so i Want to know that we should deduct wct at 2%.
Is it right.
23 July 2025
https://docs.google.com/document/d/1zJBEOOBMxrWv1jMmR8iEWd2ErtwMMhnU0xAT8oNh7sg/edit?usp=sharing
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