can any one clarify this please urgent

Tax queries 632 views 2 replies

PADMAVATHY.N

student

80 Points Posted on 16 February 2010

Sir/ Madam,

i happen to come across a situation that a department/ office at the time of payment to the contractor for the work done by him deducts VAT and remit the same before the payment made to the concern person(contractor).....can it is possible to deduct VAT before making the payment to the said contractor...???if it is possible under what section it can be made???r the payment made is wrong??

and

while calculating the "Income from house property" the house for which is situated in some other part rather than the residential place can avail the claim of interest if it is purchased out of the loan and interest is been paid since july 2010 for the same..???if so under what section it can be done so???

and

whether loss on house property can be shown on the house which is not rented and self occupied and can we claim the interest on loan on calculating the income from house property for that house...???

these doubts might be silly but i m geting confused with the things can any one please help me in this regard...i ll be thankful....

thanks,

padma.

Replies (2)

CA Pranjal Joshi

331 Points Posted on 16 February 2010

Hi,

For stating the section of VAT TDS provisions, one has to refer to the state vat laws. for e.g. - In Maharashtra such provisions are covered by Section 31 of Mvat Act & Rule 40 of Mavat Rules. So refer to the concerned state vat law.

There may be negative income under the head income from house property, as in case of self occupied property GAV is Nil but still deduction of interest u/s 24 of Income Tax Act is permissible.

I could not understand your 2nd Question

Max Payne

employed

2574 Points Posted on 16 February 2010

Dear friend,

It is called Works contract Tax deducted at source (WCTDS) in kerala, where i come from.

Since the contractor may be dishonest or may not know how to compute his WCT liability, the contractee is required to deduct WCTDS as remit to VAT dept.

For this, the contractor will get a certificate from the Dept stating the amount of WCTDS to be deducted, for each contract.

Contractee has to deduct the WCTDS and remit it monthly, and give a quarterly certificate to the contractor, i think its in form 20B (KVAT Rules) here.....

2 & 3.

Interest on HL is claimed on accrual and not payment basis.

If let out, no limit for interest

if self occuppied, then 150,000/- (generally)