applicability of VAT under APVAT ACT, VAT + CST

[sid chakravarthy]

sir,

                             In a works contract by name "Improvements to the computer room"....which includes cement work,painting work,electrical work, and supply and installation of tube light fittings, fans, chairs,air conditioner etc.

                            In this connection, I would like to know the rule position relating to TDS under APVAT ACT. Whats is the correct procedure to deduct TDS.Whether to deduct 5 percent on total value of work done or to deduct 5 percent vat on civil work portion leaving the supply portion without TDS.

yours sincerely

Chakravarthy s.n.

Posts / Replies

[Pradeep Khatri]

Dear Sid,

In our opinion, you would have to deduct TDS on the gross value of Work Contract as it seems to us that  it is a indivisible works contract.

Also check the provisions of APVAT in this regard.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

[venkata kondala rao manikonda]

Dear sir,

If you are in a position to split the work,  on Raw material you have to pay vat  and remain value you have  to pay TDS and service tax otherwise you have treat as lumpsum contract and pay vat at the rate of 5 percent and tds as per the applicable rates