Our is a Central Govt Department under Defence R&D Organisation. We are not engaged in any type of commercial activity. We neither manufacture anything nor sale any material or services. We only do Research work only for our government. We have received a notice from Asst Commissioner (Sales Tax) Uttarakhand stating that we have not deducted TDS udner Uttarakhand VAT Act 2005 on the purchases made by us.
Kindly advise whether we are liable to deduct TDS under VAT Act and to file periodical returns keeping in view that we are a Govt Department (no undertaking), in fact Ministry of Defence.