20 August 2009
I am working in a construction Company. My clients deduct WCT @ 4% which we have to claim as a refund after adjusting VAT payable. I come to know that in some states (like Uttrakhand)there is some rule regarding concessional rate of WCT where department allow to deduct WCT at lower rate Further I want to know whether this rule is also there in Maharashtra and haryana so that our client will deduct WCT at concessional rate. please also specify any Rule or section in this regard.
21 August 2009
The provisions in respect of Maharashtra VAT is that under Sec 31 the employer has to deduct TDS at the fixed rate of 2& ( If the contractor is registered) & 4% (if the contractor is unregd) as per notification no 97 dated 20-08-2005. IF the contractor brings a certificate specified in Sec 31(b)(ii) then the employer is not supposed to deduct tax in respect of the said contract. The certificate prescribed is as per rule 40 is in form 411 consequent to application by contractor in form 410.
20 July 2024
In Maharashtra and Haryana, the rules regarding concessional rates for WCT (Works Contract Tax) and VAT (Value Added Tax) vary, and it's important to understand the specific provisions in each state:
### Maharashtra:
1. **Works Contract Tax (WCT)**: - Maharashtra has specific rates for WCT based on the type of contract (composition or lump sum contract) and the nature of work. - As of recent updates, there were no specific concessional rates uniformly applicable for all types of works contracts under Maharashtra VAT laws. However, rates and rules can change over time, so it's advisable to check with the Maharashtra Sales Tax department or a local tax consultant for the latest updates.
2. **VAT (Value Added Tax)**: - Maharashtra VAT rates are also specified based on the type of goods and transactions. Certain goods and activities may attract lower rates, but there isn't a general concessional rate applicable across all transactions. - Concessions or lower rates, if any, are usually specified in the Maharashtra VAT Act or rules framed under it.
### Haryana:
1. **Works Contract Tax (WCT)**: - Haryana, similar to other states, has provisions for WCT on works contracts. The rates can vary depending on the type of contract and nature of work. - There may be specific provisions for concessional rates for certain types of works contracts or projects. These are typically mentioned in the Haryana VAT Act or related notifications.
2. **VAT (Value Added Tax)**: - Haryana VAT rates are applicable based on the goods and services involved in the transaction. Like Maharashtra, there may be lower rates for specific categories of goods or activities. - Concessional rates or exemptions are detailed in the Haryana VAT Act and notifications issued by the state government.
### Specific Rules or Sections:
To find the exact provisions for concessional rates of WCT and VAT in Maharashtra and Haryana, you would typically refer to:
- **Maharashtra**: Maharashtra Value Added Tax Act, 2002 and rules framed thereunder. Specific notifications issued by the Maharashtra Sales Tax department may also provide details on concessional rates.
- **Haryana**: Haryana Value Added Tax Act, 2003 and rules. Notifications and circulars issued by the Haryana Excise and Taxation department will specify concessional rates applicable for different categories of transactions.
### Concessional Rate of VAT in Haryana:
For specific concessional rates of VAT in Haryana, you would need to refer to the Haryana VAT Act and relevant notifications. These rates may vary depending on the nature of goods or transactions involved. It's advisable to consult with a local tax advisor or directly approach the Haryana Excise and Taxation department for the most accurate and updated information.
In conclusion, while Maharashtra and Haryana have provisions for WCT and VAT, including potential concessional rates, the specifics can change based on updates to state tax laws. Consulting with a tax professional familiar with state-specific regulations would be beneficial to ensure compliance and optimize tax liabilities.
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