setoff the purchase tax liability from W.C.T./T.D.S.

[Jasbir Uppal]

 

Dear Sir, 

A civil work  contractor case, T.D.S.  is being deducted at source by the contrecttee, applicant  purchased goods from unregistered dealers  which in turn used  in works contract and providing purchase tax liability in our books of accounts. The such contractor can setoff the  purchase tax liability from the WCT-TDS. Please also provided relevant apex court ruling 

AI Summary

Contractors Cannot Offset Purchase Tax Liability Against WCT-TDS, According to UPVAT Act Section 2(p) A discussion on a forum involves a query about whether a civil work contractor can set off purchase tax liability against WCT-TDS. The contractor purchased goods from unregistered dealers, incurring purchase tax liability recorded in their accounts. Two replies clarify that such a setoff is not permissible. One response cites the UPVAT Act, specifically section 2(p), explaining that input tax pertains to tax paid on purchases from registered dealers or directly to the state, and it cannot be set off against WCT-TDS. The discussion emphasizes compliance with tax regulations and definitions under the relevant tax act.