My firm is in TamilNadu, one of our customer in Maharastra deducted 2% as Works contract tax. Now they came to know that they have wrongly deducted Works contract tax.
How our customer able to refund it.
If they issue any certificate against that, can we from Tamil Nadu Sales Tax adjust this tax against our sales tax payment.
28 July 2011
No, the WCT deducted by a company in Maharastra can not be adjusted against the sales tax dues of Tamil Nadu since the Sales Tax is in ambit of State governments and inter state adjustment of taxes is not allowed. It can be adjusted only against dues in Maharastra. For refund of the same you have to go through the specific provisions of MVAT.
CAclubindia
