one of my client is registered under MVAT and having the business of supplying surrvey instruments & civil engineering material, recently he has supplied survey instruments to Maharashtra State Govertnment(PWD)and has rasied the bill with vat @ 12.50% the office while paying him has deducted VAT @ 4%, TDS @ 5.25%, service Tax @ 12.36% and has paid the bill,
i.e. suppose the bill amount is Rs 1,000/- they have deducted Rs 40 as vat, Rs 52.50 as tds, & 123.60 as service tax.
now my query is under which section they have deducted this tax? can they deducted it? can we claim the VAT amount while filling the half yearly VAT return & under which section ?
yes we can claim the TDS amount while filling the ITR, and he is not registered under service tax so that amount cannot be claimed.
Please Guide me hoping for a positve response form all
10 October 2008
Mr. Atul, It appears that your client is a seller and not a service provider, he is also not executing any works contract. I do not find any reason of deducting of TDS under IT Act on sales. There is no any TDS clause under service tax act. You can ask for explanations and the reasons of such deductions, such types of unauthorised and unwarranted deduction should be discouraged.
CAclubindia
