REFUND OF STDS ON INTER STATE WORK CONTRACT

This query is : Resolved

NARESH KOTHARI (Querist)
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20 October 2009 SIR

WE ARE CONTRACTORS WHO HAS BEEN MANUFACTURING SUPPLYING ,INSTALLING & COMMISSIONING SIGNAGES NAMELY MONOLITHS ( THE MAIN POLE SIGNAGE WHICH SHOWS THE PRICE OF DIESEL PETROL AT THE PETROL PUMPS. BESIDE THIS WE ALSO WE DO THE BUILDING CLADDING WITH aLUMINIUM COMPOSIYE PANELS ON THE CANOPIES AND SALES BUILDING OF SUCH RETAIL OUT LET.

ALL OUR MATERIAL IS SEND FROM OUR FACTORY AT KOLKATA AND WE HAVE NOT TAKEN ANY REGISTRATION IN OTHER STATES SO WHEN WE BILL WE PAY CST AT W.B.BUT IN EACH STATE THEY DEDUCT WCT TDS WHILE MAKING PAYMENT TO US. WHAT IS THE LAW TO GET REFUND OF SUCH TDS

NARESH KOTHARI

SARATHY RP

SARATHY RP (Expert)
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23 October 2009 Dear Mr Naresh Kothari,

Unfortunately, this is the state of affairs today. The deemed Sales has been brought under the Sale definition of CST Act, only w.e.f. 11/5/2002 (19 years after the Constitution has been amended).

Though the Act has been amended, the corresponding rules have not been framed under the CST Act, neither by the Centre nor by the State Governments (who actually administer the collection of CST
in their respective States and frame necessary rules).

Given the above background, according to me, the only way out is to register locally in respective states, file nil returns and claim refund (easier said than done!).

Thanks.

Sarathy

Sanjeev Kumar

Sanjeev Kumar (Expert)
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24 October 2009 in this case if all materials supplied from W.B. (Factory)to execute WCT outside works contract then contractee is not liable to deduct WCT TDS (VAT) becuase that WC covered under Central Sales ACT and under CST Act there no provisions for WCT TDS, so 1st discuss with clients and otherwise you have only way as Mr. Sarathy.

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NARESH KOTHARI

NARESH KOTHARI (Querist)
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01 November 2009 SIR
REFER TO MY ABOVE QUERRY YOU HAVE SAID THAT WE SHOULD FILE FOR REFUND OF STDS AFTER REGISTRATION , I HAVE TO ASK YOU A FEW THINGS

1) DURING THE TIME WHEN STDS WAS DEDUCTD WE DID NOT HAD REGISTRATION IN THOSE STATES CAN WE REGISTER NOW AND FILE FOR REFUNDS WHIH WAS DEDUCTDE IN EARLIER YEARS

2) IS THERE ANY TIME LIMITATION WITHIN WHICH WE SOULD FILE FOR SUCH REFUND OF STDS

NARESH KOTHARI

NARESH KOTHARI

NARESH KOTHARI (Querist)
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31 January 2010 i am awaiting reply to my above querries from the experts

SARATHY RP

SARATHY RP (Expert)
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02 February 2010 1. Without a valid TIN registration number your customers cannot effect any deduction as it should be supported with a certificate mentioning various details of the contractor including his TIN ref. The objective is the same will be credited by the department in their register to the a/c of the contractor. Now that your customer has effected deduction, please find out whether they have actually remitted the same to the department. If not, you can seek refund from your customers. If they have already remitted then, you must register your firm in those States and seek refund. There is no other option.

2. Though there is no limitation for claiming refund, it would be better to report such certificates to the assessing authority in the month it was received and seek refund after the audit in respect of the period is over.

Thanks.
Sarathy