Vat return

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2011 MCD has handed over a contract to a company (hereinafter refered to as first company) for construction of automated multi level parking. The company has further contracted the work to another company (hereinafter refered to as second company)which is carrying out the construction work.

The company which is carrying out the construction work gets covered under the works contract service.

On bills raised by the second company, it charged VAT. The first company deducts works contract tax @ 2%.

Is the first company required to file DVAT return ?

Please reply as its urgent.

U S Sharma

U S Sharma (Expert)

16 August 2011 yes, return should be filed by both the contractors.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2011 Could you please let me know if the contractee company which is registered under DVAT required to file a return in form DVAt 16 even though its turnover is NIL ?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

03 August 2025 Regarding your VAT return query on works contract in Delhi:
Both contractors (first and second company) are required to file DVAT returns.
The first company (contractee) deducting works contract tax must still file its return.
Regarding the contractee company with NIL turnover:
Yes, even if the turnover is NIL, a registered dealer under DVAT is required to file a NIL return (Form DVAT-16) to comply with regulations.
Filing NIL returns regularly ensures compliance and avoids penalties.
So, both the first company and second company must file their respective VAT returns, and the first company must file even if its turnover is NIL.

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