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VAT TDS AND GST TDS DIFFERENCE

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kumar

student

167 Points Posted on 17 August 2022

hi
what is the difference between gst and vat tds . anyone care to explain?

Replies (2)

Quick Summary

The discussion clarifies that there's no direct equivalent of TDS under the VAT regime in Maharashtra, unlike GST. While VAT was state-specific and applied only to goods, some states like erstwhile AP and Telangana had TDS provisions for works contractors under VAT. The main distinctions lie in the absence of a monetary threshold in VAT TDS (unlike GST's ₹2.5 lakh limit) and differing TDS rates (5% for VAT vs. 2% for GST).

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 17 August 2022

No Such concept of TDS under VAT regime in Maharashtra ( M Vat Act ) , like in GST TDS under section 51 of the CGST act, So no question of difference. Vat was State wise imposition on Goods only not on services .

koti chunduri

46 Points Posted on 17 August 2022

In erstwhile a.p. as well as present Telangana state there used to be tds under vat act from the works contractors. the basic difference is there is no amount limitation as in gst where it is 2.5 lacks and other basic difference is percentage which is 5 in vat 2in gst.