Dear Experts,
We are Private limited company having one doubt regarding Vat TDS on works contract
We have given a contract to One Private Limited Company (XYZ) to build factory shed with their material, XYZ Given to us a contract agreement it states that…..
Material Price : 90,00,000
Exice duty @ 10.3% on Material Price : 9,27,000
Total :99,27,000
Vat @ 4% on above Total : 3,97,080
SUPPLY TOTAL :1,03,24,080 ( 99,27,000+3,97,080 )
Frieght : 1,20,000/-
MATERIAL PORTION TOTAL: :1,04,44,080. 00
Installation Chgs : 11,75,000/-
Service tax @ 10.3% : 1,21,025/-
INSTALLATION PORTION TOTAL: 12, 90,025. 00/-
We have paid total amount of Rs. 1,04,44,080/- without deducting TDS (Income tax) and VAT TDS……..
Now we want to pay Installation chgs….. as per our experience we have to deduct 2% of TDS (Income tax Under section 194C) at the time payment on installation portion…….my queries are…
1.what is the process of VAT TDS ( works contract) for the above case….?
2. If there is VAT TDS then pls tell me the remitting details also with challan no (for exmple TDS challan ITNS 281).
3. Is there any limit for deducting VAT TDS?
4. Is there any penalties or any interest...? if not deducted Vat TDS…need ans with Andhra Pradesh sales tax provisions.
Both Parties ( xyz and our company) are from Andhra Pradesh…..
Thank you,
PRASAD
ACCOUNTS OFFICER
CAclubindia
