i want to confirm that one of my client is contractor not having the valid vat certificate at the time when the wct has been deducted while making payment to him under maharashtra vat act @ 2%.further the party liable to deduct wct withheld an additional amount of WCT @ 2% with interest for any future liability form Maharashtra Vat Givt. Now the contractor has got the valid vat certificate form the maharashtra vat deptt claiming his additional 2% wct with interest back from the party and has issued a indemnity bond saying that in case of any future liability form maharashtra vat govt, he will indemnify the same. Please advise, what should the party do...should he has to refund the amount or pay the withhold amount to the maharashtra govt."?
CAclubindia
