16 July 2013
What does the TNVAT Rules Say about the TDS ? Rule No. 9 governs the TDS provisions found in Section 13 of the TNVAT Act. The following is the reproduction of rule 9 of TNVAT Rules. 9. Tax deduction at source.— (1) Any person who makes a deduction under section 13, shall deposit the sum so deducted to the assessing authority having jurisdiction over the person or to any other authority authorized by the Deputy Commissioner to receive such payment, on or before the 20th day of the succeeding month in which the deduction was made with a statement in Form R. (2) The certificate that a dealer has no liability to pay or has paid the tax under section 5, referred to in clause (b) of the first proviso to sub-section (1) of section 13 shall be in Form S.
(3) The certificate of deduction of tax referred to in sub-section (3) of section 13 shall be in Form T.
(4) The notice in writing, indicating the amount payable under the Act, referred to in sub-section (5) of section 45 shall be in Form U.
As provided in Section 13 of TNVAT Act and Rule 9 of TNVAT Rules, it could be concluded that tax should be deducted on TOTAL PAYMENT, if it exceeds or is likely to exceed Rs. ONE LAKH per annum, at the rates prescribed in section 13 and should be handled as directed in rule 9.
You have to deposit the deducted amount to your own circle with a separate cheque and after getting the signature and seal from your assessing authorities, you should send the form to your contractor,if he is a registered vat dealer.
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