07 May 2009
IS the TDS towards VAT in case of works contract an expence to the contractor? whether it be allowed in computation of taxable income of the assessee for the year?
I submitted this question 30 hrs before. i could not get reply. i think question is not understood. so this details We are pwd contractor and get contract reciept(sales) from govt for work done. In said contract receipt they deduct 2% to 4% towards TDS VAT as agreed upon. Is this an expence for us? can it be claimed as an expence in computation of our taxable income of the year?
30 May 2009
Under VAT act if conract value is more than 1 Crore, the buyer is liable to deduct the TDS and to provide a certificate for same in prescribe form 703. you are eligible to get credit for same as like VAT input credit, and can set off your output tax liability towards same.
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