svs (Finance) (65 Points)
18 March 2009We are service company located in Maharashtra not registered under VAT
we had certain civil works carried out which involved material and labour and crosses Rs 4 lacs.
Are we supposed to deduct tax of the contractor under Works Contract rules. If so what would be the rate ?
Do we need to register for such deduction or for deposit of such deduction?
What is the form to be used to deposit tax deducted under Works Contract Tax ?
Pravin Nemad-CWA
(Cost Accountant)
(60 Points)
Replied 25 March 2009
WCT TDS is applicable, only if Contract Value exceed 5 lakh during the finacial year, in ur case u need to deduct TDS @ 2% if contractor registered under MVAT otherwise 4%.
Use Form 210 for deposing deducted amount, & desposit the amount after completion of 10 days of month. In form no 210 there is no colum for TDS but you mention tds in Payment on account colum(see circular No.06 dt. 13th may 2005).
After deduction you can issue TDS certifcate in form No 402 to Contrator.
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