Earthwork in cutting to form.formation, earthwork in filling embankments under VAT, VAT + CST

[Ajay Sahi]

Sir. As per work order we have executed earthwork and the construction of minor bridges, retaining wall etc hasn't been exectued before 01/07/2017. Hence are we liable to pay VAT for earthwork in cutting, laying maccadum etc for railway works as works contract. Where the railways bills specifically shows earthwork in cutting, however they have deducted tds on vat. Can I claim for refund of the tds deducted for earth work.

Posts / Replies

[Ganeshan Kalyani]

You can set off the credit of TDS against VAT payable.

[YAGAY and SUN]

This deducted TDS is nothing else but a sort of advance tax paid indirectly by you on the work done beyond a threshold limit. Whenever you charge VAT/WCT on the bills/invoices as raised by you, this TDS gets accumulated in your account with State Government and at the time of assessment this TDS amount is adjusted with you outward liabilities and if paid in excess then you may get refund.

[kollengode venkitaraman]

pure earth work is taxexempt in VAT. it is purely labour supply as no material supply is involved in the work.

[Ajay Sahi]

Thanks