05 July 2011
Mr.Baljeet Singh, The painting contractor in this case is engaged in transfer of property in his work ,and therefore ,tax liability arises. The contractee,althogh not registered,being a Govt,semi-govt,local bodies,institutions,PSUs,private industries,social organisations etc have to deduct VAT TDS from the amount payable to the contractor and remit the same to the VAT dept. The contractee has to issue a certificate of making TDS,to the contractor ,which is a proof of tax payment for him. MJK