VAT

TDS provisions the State VAT Act & Rules

In most of the State VAT Acts, the provisions of Tax deducted at source (TDS) are incorporated. The logic behind the TDS provisions is that the some of the dealers  are not organized in many case of business/idustries and they either do not pay taxes on time or they are able to organise thier bussness affair because of nature of business , therefore in this provision, customer are supposed to deducts the prescribed % of TDS from the Sale Price and pays the same before the prescribed dates, directly, to the respective State Government through the specified challan. The TDS is to be deducted by the specified customers only as notified by the State Governments. Generally, the dealers registered under the State VAT Acts, State and Central Governments, Corporations, Government Undertakings, Co-operative Societies only have to deduct the said TDS and not by all the Customers. The monetary limit of the turnover is prescribed for such deduction in most of the VAT Acts.

It is responsibility of the Customer to deduct the prescribed % of TDS (As provided in the relevant State VAT Act & Rules) and pay the same to the State Government before the prescribed date, otherwise interest / penalty is leviable.