Shall we claim wct with out vat registration

    A person engaged only in purely labour contract work need not register under VAT laws. Even if there is some small quantity of material consumption-total amounting to less than Rs5 lakhs in a year-there is no neccessity to take up a registration.In this position the clients should have been informed that you have no tax liability under the concerned VAT Act and hence no tds is to be made.In all the states this provision of either not making tds or doing it at a reduced rate as per the vat liability of a contractor is available in the vat laws.Now also you neeed not register if you are not liable to do so(i.e.taxable sales beeing less than Rs5 lakhs).As the tds has been done in an improper way you can file an application before the  commissioner/joint commissioner of commercial taxes of your area furnishing all relevant details. After making necessary enquiries the department will refund the irregular tax recovery made from you..... mjk