Wrongly deducted MVAT

This query is : Resolved

Atul (Querist)
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17 September 2009 We are Delhi based interior designers Registered with Delhi govt. for DVAT. We have no presence in Maharashtra.
Our Client located in Mumbai wanted to Open an office in Delhi.
We were awarded the contract for renovation work to be carried out in Delhi.
On assessment of final payments we find that a deduction of 2% is made towards MVAT from our payment and certificates have been sent to us.
Is it right to deduct MVAT at source when work was done in Delhi for a branch office to be opened in Delhi?
And in case of wrong deductions how can we get the refund?

Rajeev

Rajeev (Expert)
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18 September 2009 1. i dont think maharashtra state has any power to tax , work contracts executed by a delhi dealer in delhi

2. since the transfer of property( as explained in earlier work contract tax ) is effected in delhi , your client is wrong in deducting tax as MVAT.