Tds can applicable on dvat

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Nikhil Kumar

accountant

26 Points Posted on 22 March 2013

DEAR USERS,

I HAVE A QUARY FOR ALL OF YOU, PLEASE TELL ME THE SOLUTION, I AM WORKING IN A PVT SECTOR AND WE HAVE A DEBTOR (GOVT. TENDER), WE HAVE SUPPLY SOME MEDICAL GOODS AND VAT IS ALREADY APPLICABLE ON IT, THE PARTY DEDUCT TDS ONLY BUT LAST QTR (JAN - MARCH 13) THEY DEDUCT EXTRA AMOUNT, AND TOLD ME IT IS TDS ON VAT, THE SUMMERY IF BILL IS BELOW,

SALES AMOUNT 250648/-

THEY GIVE A CHEQUE 235434/-

BALANCE 15214/- TDS

BUT ACTUAL TDS IS 5013/- (2 % OF SALES)

AMOUNT OF RS 10201/- TDS ON VAT ?

WHAT IS THIS, HOW CAN I SHOW IN MY BOOKS.

Replies (4)

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 22 March 2013

If you are a registered dealer then there need not be any tds on purchase of medicines/equipments by the govt from you.You should protest and stop it . For the wrong recovery of tax made obtain a certificate from them . the amount wrongly collected as vat can be claimed back from the department by filing copies of the certificate and invoice........mjk

Nikhil Kumar

accountant

26 Points Posted on 23 March 2013

Sir we are registered dealer , and deducted TDS amount on Dvat, will they issue certificate in near future,

but my quary is already stand that, there is TDS is applicable on Vat or not , if yes tell me circular ,

or notification,

by my over view it is related with work contract because we give a medical Equipment (blood

electrolyte machine) on quarterly rent basis and consumables (in use machine ) delivered by us on

challan or without bill, for example we give a bike to a person on rentel bill and petrol, engine oil

and parts is given by us on challan or free.

Deepak sharma

Learner

889 Points Posted on 20 April 2013

If this is Work Contract then they can deduct TDS, and will issue you DVAT-43 Certificate, with the help of that you can adjust & claim VAT from the Department.