We are doing works contract activity in Maharashtra. At Present we are doing invoices for works contract activity charging VAT @ 8% under composition scheme. We are procuring material from our sub-contractor for this works contract activity. My query is that whether we can issue Form 409 & 406 to our sub-contractor for purchases, where we are charging VAT @ 8% in our sales invoices under composition scheme. regards Kamlesh Modak
10 February 2009
Sir, First of all, material is not procured from sub-contractors. Sub-Contractors are the persons to whom the we sublet the contract. TDS will be deducted by the person who has awarded "you" the works contract.
CAclubindia
