Govt contractor

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jagdev (Querist)
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20 October 2013 i want to know that in govt. contractor case who is liable to pay sale tax in punjab. if govt. dept. deduct vat from contractor account & pay it to sale tax dept. can govt contractor get vat refund or not. if yes how its possible..

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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21 October 2013 A govt department will do TDS on all contract payments and issues certificates of the same.This certificate should show the bills no date,total value and amount of TDS done.The dealer has to declare all the payments received and pay vat as per rules after taking necessary deductions in his returns.While paying tax he can reduce the vat payable by the tds amount and remit the balance. As the govt departments regularly do tds,but delay in issuing certificates,it can be claimed in advance i.e. in the absense of them,but later to be filed.Now this old sales tax practice is objected,because ,under VAT laws each month is an independent tax period. And also it may not be correct in law to claim tds deduction without valid documents.Hence the dealer/contractors should try to collect tds certificates immediately along with payments received....mjk