How to pay vat tds

Others 4046 views 4 replies

Narendra Puvvadi

31 Points Joined March 2011

HI ,anybody explain how to pay VAT TDS and in whose favour we need to pay i.e whether in favour of CTO concerned to Contractee or contractor.

Replies (4)

ATUL KAKKAD

ADVOCATE

30 Points Joined April 2012

Dear Sir,

every state Vat act has such provisions in the act and one has to follow the steps mentioned in the same. How ever if you are utilising e services then you may log into govt. web site and go to state treasury e payment tab and click . choose the state govt under which vat(tds) is to be deposited . choose for which period and choose TDS in scroll down menu. make e payment of TDS amount. Prepare list of contractors from whose payments you have deducted vat give name tin bill no date gross amount of bill 4% or 5% vat amount deducted and give balance amount . send the e payment challan copy alongwith this list to the Deputy Commissioner of Sales Tax where you are regd and copy to the circle where each of the contractors is regd, send TDS certificate to dealer and copy to the Deputy commissioner of sales tax where you are regd and one copy to the contractor where they are regd.

RENGARAJ R.K

ADVOCATE

7557 Points Joined October 2010

Dear Mr.Narendra Puvvadi,

For example you are an assessee in the state of A.Pradesh. TAX DEDUCTION AT SOURCE (TDS)

[Section 22(4); Rule 17(3)(i), 18(1)(b); Form 501A]

Section 22 (4) : In case of 1[a dealer] executing works contract 2[for

Central Government or a Company] or a statutory body or an undertaking or

an institution other than Government or local authority irrespective of the

quantum of value of the contract or for any other dealer or a firm where the

value of the contract exceeds Rs. 10,00,000/- (Rupees Ten lakhs only), a tax 1[at

the rate of four percent (4%)] shall be deducted from the amount payable to

him and such contractee deducting tax at source shall remit such amount in

the manner as may be prescribed.

Rule 17 (3)(i) : Where the contractee fails to remit such tax deducted

at source within fifteen days of the date of payment to the contractor, the

authority concerned.

The contractor has to collect the TDS from the contractee and the pay the tax to the circle of Contractee within 15days of the deduction, failing which interest @ 12% ? will have to be remitted.

rengaraj r.k

Sonu Kumar

Account Manager

665 Points Joined March 2012

Contractor Deduct WCT @ 4 % (Bihar) and Deposit in Local Treasury Office through Challan. and Issue C-II Certificate to Contractee on Quarterly Basis.