This is Narendra and I just wanted to know that if tds is applicable under both the Act will it be deducted under both the act? e.g. if a person has to pay to a contractor Rs. 80000/- for the contract price, the tds will be deducted under I.Tax @1% Or 2% as applicable and also 2% or 4% under VAT Act? I actually wanted to know that in case of individual contractor the tds will be deducted 1% and 2%(Regd under Vat) totalling 3% on 80000/- Am I Correct or not?
Yes!TDS under both Vat Act and Income tax Act will be applicable on your transactions. As both the TDS mechanism are governed by separate act. Moreover, TDS under vat act is WCT(Works Contract tax) TDS which gets deducted while receiving payment from contractee.
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