TDS on CST works contracts

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Butchibabu Gorantla

CA CS

21 Points Posted on 08 September 2011

Any body could clarify the following on CST?

1. Works contracts are executed from Hyderabad (ie from AP) to Culcutta (ie Westbengal). The contractee at West Bengal is liable to deduct any TAX as TDS under CST ?

2. What is the rate of standard deduction available to Contractor while reporting the CST sales?

3. In case contractee is already deducted the tax at West Bengal as contract TDS for works contract and issued the certificate to the Contractor, Whether the contractor can claim the credit for the same in AP or not?

Thanks in advance

Replies (4)

AJOY PAUL

ASSISTANT MANAGER

22 Points Posted on 23 September 2011

sir,I am not able to understand on which amount WCT will be charge. i.e. on gross bill including labour and service tax or any thing else.

Please advice.

Swaminathan

Chartered Accountant

66 Points Posted on 14 October 2011

In case of Works Contract under CST, as per the act, there is no need to deduct TDS on WCT. In my opinion it is not possible to adjust the TDS deducted in WB in AP return. While filing the return in AP, the assessee is required to pay the VAT on Works contract executed in West Bengal

SANDEEP KUMAR GUPTA

Manager

26 Points Posted on 10 November 2011

hi,

In the present case, The AP state government willcharge CST on the Material Value whcih is transfer from AP to West Bengal,

Contractee is not liable to deduct TDS works Contract as Contractee has paid central sales tax on the value of Material to Contractor,

rate of Deduction and certificate issued/not is not relevent,

Thanx,

Sandeep Gupta

9810417710

Prakash T c

Executive

153 Points Posted on 09 January 2012

Hi Butchi Babu,

Have your query cleared. please post your views. so that every one will get clear on you question.

As the sales tax on contractors shall be deducted by contractee only not by contractor, then how shall the Ap contracter will pay cst. Tds is centralised they can deduct the Tds.

Regards,

Prakash