MVAT TDS

This query is : Resolved

CA SIDHARTH HIRALAL PATNI (Querist)
Follow

21 April 2010 Hello friends

plz explain me following
When should a person deduct TDS(MVAT)

and secondly

A works contractor sub lets a contract with material to another contractor. Should he deduct MVAT TDS from payment.

Thank You

CA Umesh Sharma

CA Umesh Sharma (Expert)
Follow

27 April 2010 Dear, Please refer to Notification No. VAT-1505/CR-123/Taxation-1 Dated 1-4-2005. 2% TDS from registered dealer and 4% from URD dealer for contract payments above Rs.5 Lakhs.

TDS not applicable on contracts payments between Principal contractor and sub contractor.

Thanks.