Client deducted VAT

This query is : Resolved

Prasenjit Ghosh (Querist)
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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

Ram Avtar Singh

Ram Avtar Singh (Expert)
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17 November 2009 if you are not registered you can not charged vat on behalf of govt.

TDS to be deduct on that bill.

Prasenjit Ghosh

Prasenjit Ghosh (Querist)
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17 November 2009 we have not charged VAT but they have deducted VAT @ 4%. we have charged service TAX only
plz rply

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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17 November 2009 No party can not deduct any vat fron you. if he is deducting ant amount collect from party debit note for that.

Sunil

Sunil (Expert)
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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.