VAT TDS AND GST TDS DIFFERENCE

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).