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TDS on works contract, VAT + CST

Issue Id: - 110804
Dated: 16-8-2016
By:- THYAGARAJAN KALYANASUNDARAM

TDS on works contract


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Dear experts,

one of my client has not been deducted TDS on works contract under section 13 of Tnvat act for the past many years. Suddenly the enforcement wing officer came for audit of my client and says that for non deduction of TDS under works contract executed by the contractor in my client factory, will lead to the client has to pay the TDS along with interest n penalty. However, the contractor who executed the contract at my client place have paid tax under section 5 only. My question is whatever revenue to be paid everything has been collected by the contractor from my client and remit the same to the revenue authority. There is no revenue loss to the government. Some where I have gone through tribunal case laws to support this case. Can any one will share the tribunal case laws or any other cases to support this issue either high court of madras or Supreme Court. Kindly help me in this regards it's very urgently needed.

Posts / Replies

Showing Replies 1 to 4 of 4 Records

Page: 1


1 Dated: 17-8-2016
By:- Ganeshan Kalyani

Sir, though there is no revenue loss to the Government there is compliance lapse. When the provison states that the contractee has to deduct TDS and pay to the Govt the assesse is ought to comply the provison.

Sir, your case would be won at Tribuanl level. The lower authority may not accept your contention. Thanks.


2 Dated: 17-8-2016
By:- KASTURI SETHI

Sh.Ganeshan Kalyani Ji,

Sir, The same is the situation in Service Tax. Sub-contractor is required to pay ST though the main contractor will take credit and hence it is revenue neutral. I agree with you that relief is possible at Tribunal stage. I think in Income Tax there are so many judgements on this issue. Do you agree ? You know I am a layman in Income Tax.


3 Dated: 17-8-2016
By:- Ganeshan Kalyani

Sir, in sales tax the conplaince lapse in case of TDS provision attracts penalty. Thanks.


4 Dated: 17-8-2016
By:- Ganeshan Kalyani

Sir, I agree with you. Thanks.


Page: 1

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