17 November 2009
Hi, our client has deducted 4% VAT from our invoice.We have designe and printed some card and submited the We have charged only service tax on total amount invoice. we have not VAT Registration no becouse we are PR agency generaly we dont sale any product.
Now things is that client issued payment after deduction of TDS & VAT 4%.
My qustion is that is client can deduct VAT.
Rgds Praenjit we have not charged VAT but they have deducted VAT @ 4%. we have charged service TAX only plz rply
17 November 2009
In some states for eg. Maharashtra, certain class of VAT dealers (eg. Governments, Large Turnover Dealers) have to do TDS of VAT from VAT Bills submitted to them of a certain value. This is usually done when engaging contractors and your printing job is under contract. The VAT is supposed to be adjusted in your VAT payment to the government even if you have opted for a composition scheme. Whenever we quote to such dealers always quote 4.16% higher if your are not a VAT Dealer. A VAT dealer is able to adjust the VAT TDS against his dues to the Commercial Tax Department. Take a Certificate from him for deduction of VAT. It will be allowed to you as an expense.
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