26 September 2013
at What % TDS (VAT)to be deducted on Works Contract, whether 4% / 5% explain with supporting proof. as per Sec 15 1/b of KVAT Act 2003 it is Not Exceeding 5%. then whether to be deucted at 4%, 3%, or 2%?
26 September 2013
For doing TDS on works contract bills specific rates are not given. TDS is to be made as per the tax liability of the contractor.In the normal cases 4% TDS is made as it is the rate of tax payable under composition scheme.If a ontractor feels that it is too high and prooves that his actual liability falls at a lower rate,e.g. due to major part of work being entrusted to subcontractors etc,he can get the TDS rate reduced to appropriate level.See sec9A of KVAT Act for details.....mjk
CAclubindia
