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Tds on works contract

CA Aman kesharwani (Practice) (159 Points)

21 October 2016

IN CASE OF WORK CONTRACT TO WHICH AMOUNT TDS TO BE DEDUCTED WHETHER TO INCLUDE VAT AND SERVICE TAX OR NOT?

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 21 October 2016

Tax to be deducted at source on value excluding ST & VAT (provided they are shown separately in the invoice).

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CA Aman kesharwani (Practice) (159 Points)
Replied 21 October 2016

IS THERE ANY CASE STUDY OR CIRCULAR REGARDING TDS TO BE DEDUCTED ON VALUE EXCLUDING VAT?

SUNEEL KUMAR (Sr. Accounts & Finance Executive) (163 Points)
Replied 22 October 2016

TDS deduct excluding Service tax & VAT amount

vishnu bhardwaj (Tax Advocate) (212 Points)
Replied 22 October 2016

can anyone give me notes on wct

CMA Poornima Madhava (CMA) (13112 Points)
Replied 22 October 2016

@ Aman: There is a circular about non-applicability of TDS on ST: https://goo.gl/NLL5L7

This is on the principle that tax at source is to be deducted on income (of the receiver) and not on the service tax portion which is paid to the government and which does not form part of income. I guess same concept can be applied even in respect of VAT. However, since VAT laws differ from state to state, a general view cannot be taken.