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Tds on mvat?

yashsr (CA) (2285 Points)

07 June 2012

Apart from TDS in Income Tax Act, 1961, am I correct that there is also TDS in MVAT(Maharashtra VAT) Act, 2002? If yes, on what amount is it deducted and when is it liable to deducted?

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4 Replies

pravin singh (article) (60 Points)
Replied 07 June 2012

Yes .Tds on mvat will be deducted. for more information plese visit on https://cakamalg.blogspot.in/2012/02/tds-on-works-contract-in-maharashtra.html

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yashsr (CA) (2285 Points)
Replied 07 June 2012

So does this mean that if the works contract value is greater than 5 lacs in a year, both TDS in Income Tax Act and under MVAT Act has to be deducted?

If yes, can you please show the working on works contract value of say Rs.6 lacs in a year exclusive of any taxes? For eg. which TDS will be applied first(in terms of calculation), Income Tax or MVAT?

yashsr (CA) (2285 Points)
Replied 07 June 2012

Originally posted by : pravin singh
	Yes .Tds on mvat will be deducted. for more information plese visit on https://cakamalg.blogspot.in/2012/02/tds-on-works-contract-in-maharashtra.html

Does this mean that TDS on MVAT applies only where there is works contract??

Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 08 June 2012

Yes dear Yashsr it is correct that MVAT applies only when there is a works contract

The TDS on the works contract will be calculated by taking into various provisions of the concerned state VAT act .

Also the calculation may change depending upon the contract

Income tax TDS is calculated on the receipt of the payment from the client whereas VAT TDS is calculated on the value of the property in goods transferred

Ok .....

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