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Who is liable for tax deduction?

April 26, 2017liable tax deduction

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Who is liable for tax deduction?

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A person who awards “specified works contract” is responsible for deduction of tax from the payments of “specified sale price” to the contractor. The TDS rates have been specified in the Notification issued by the State Government. The terms “Specified Works Contract” & “Specified Sales Price” have been defined under the VAT Act. which are as under: (i) “specified sale price” means the amount of valuable consideration paid or payable for the works contract after deducting the amount of labour charges for execution of such works contract and the value of the goods purchased in the course of inter State trade or commerce or in the course of import of goods into territory of India for use in such works contract. (ii) “Specified works contract” means the work contract, the specified sale price of which exceeds Rs.One Crore.