23 June 2013
Hi all, We have awarded works contract for our new outlet in kerala to our routine vendor who is register in Tamilnadu. will the provision of WCT TDS apply on this transaction in state of kerala ? What does section 10 of KVAT is talking about ?
24 June 2013
Yes. sec.6 levy of tax on sale or purchase of goods at Kerala will apply for
Every dealer whose total turnover for a year is not less than ten lakh rupees and every importer or casual trader or agent of a non-resident dealer, or dealer in jewellery of gold, silver and platinum group metals or silver articles or contractor or any State Government, Central Government or Government of any Union Territory or any department thereof or any local authority or any autonomous body whatever be his total turnover for the year, shall be liable to pay tax on his sales or purchases of goods as provided in this Act
24 June 2013
Ms Dipti warekar, First your contractor has to register in Kerala VAT Act. You have to deduct 10% of the gross amonunt payable to the contractor. If the contractor wishes that no excess tax is to be deducted from his payments he should produce a cerificate from his assessing authority/LVO on his correct liability and the rate at which TDS is to be made. This deducted tax is to be deposited to the Govt treasury by 5th of next month,failing which penalty and interest will be leviable. You have issue a certificate to your contactor on the amounts deducted by you with bill details. See rule 42 also for forms etc.....mjk
07 July 2013
Hello again, Do the above transaction liable to tax under CST also ? as vendor is provided us bill with CST ,it wont be double taxation? Please comment. Dipti
07 July 2013
It is not known as to the nature of contract given to your vendor. If he brings all the required material from TN and completes the work in Kerala,then you need not do any TDS for it,as in this case your contractor is not liable to pay any tax to Kerala govt.If the same vendor makes purchases in Kerala to do your work then he has to take up registration in Kerala VAT Act and you have to do TDS.Your vendor can issue a CST bill only when all the material are brought from TN for the work. ....mjk
07 July 2013
Thank you for valuable input sir. It is civil work contract & Vendor is buying most of material from Kerala only & as it is one time contract for him he is not ready to take registration in kerala & we have deducted his WCT tds also but as he registered in tamilnadu heis charging CST for this transaction & i just want to confirm is this right taxation on part of vendor. Thanks
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