vat on works contracts in Karnataka

This query is : Resolved

Surajit Das (Querist)
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02 August 2010
In karnataka vat on works contract deduction of tax at source(WCTDS) is to be must or not for employer ( execution in civil contract)
as per contract taxes are all including .

Principal contractor can given a letter to the Principal employer for non deduction of WCTDS.

VINOD ARORA

VINOD ARORA (Expert)
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02 August 2010 In fact, there is no KVAT TDS deductible by employer/contractor on contract/subcontract work, if the contractor/subcon is registered under KVAT.

However, very surprisingly, there are TDS provisions in respect of procurement of steel, wood, etc. material items used for construction work by the civil contractor, equivalent to KVAT amount charged in the invoce.