Tds on mvat(maharashtra vat)

This query is : Resolved 

Querist : Anonymous (Querist) 07 June 2012

Apart from TDS in Income Tax Act, 1961, am I correct that there is also TDS in MVAT(Maharashtra VAT) Act, 2002? If yes, on what amount is it deducted and when is it liable to deducted?

CA CS Pawan Jajoo (Expert)
07 June 2012

It is to be deducted at the rate of 5 % for URD dealers and 2 % for RD dealers.

it is deducted from the total contract value which involve material and labour.

After deducting it should be paid to the state government and certificate to that extent should be issued to contractor.

Querist : Anonymous (Querist) 07 June 2012

1) So does this mean that if the works contract value is greater than 5 lacs in a year, both TDS in Income Tax Act and under MVAT Act has to be deducted?

If yes, can you please show the working on works contract value of say Rs.6 lacs in a year exclusive of any taxes? For eg. which TDS will be applied first(in terms of calculation), Income Tax or MVAT?

2) Does this mean that TDS on MVAT applies only where there is works contract??

3) how am I supposed to take credit/refund for the same? Is the process similar to Income Tax Act. While filing return, we have to mention the TDS. If our tax liability is greater than TDS, then we have to pay the balance and if its less than TDS then the balance we can get it refunded? Or is there some other procedure?

4) Isn't it 4% for URD instead of 5% as you mentioned? Or was there a recent update?

Dayal (Expert)
07 June 2012

5 lacs is excluding taxes. It is similar to tds credit. 5% was made during the current budget

CA CS Pawan Jajoo (Expert)
08 June 2012

1) If contract value is more than 5 lac in a year then WCT is to be deducted , as well as income tax.

For 6.00 lacs Rs. contract
WCT will be 12000/- assuming RD Dealer
TDS will be 6000/- assuming individual.

Notification is there regarding change in Rate of TDS

3) TDS and WCT applies only in works contract.

4) Refund is similar to income TAX procedure

CA Vap Patel (Expert)
09 July 2015

Sir what is the procedure for getting the refund of TDS? what are the form to be filed? please explain in detail

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