TDS under DVAT

[PARVEEN ARORA]

Sir,

As per Section 36A of DVAT Act, TDS to be deducted by the purchasing dealer in case of work contract. This section specifies the category of dedicator who are liable for deducting tax. This section implies that every person other then an individual or HUF responsible for deducting tax. I want to know that whether a proprietary concern cover under an individual or not. If it will cover then there is no need for deducting tax but if not covered it will have to deduct tax. Please clarify.

Parveen Arora 

[YAGAY andSUN]

Dear Parveen

No definition of an Individual is provided under Section 2 of the DVAT Act,2004. But a proprietary firm may be treated as an Individual under the DVAT Act.  You may also seek  clarification from the Department in this regard.

Team YAGAY & SUN 

AI Summary

TDS under DVAT: proprietorships may be treated as individuals, potentially excluding them from the deduction obligation. Section 36A of the DVAT Act requires certain purchasers to deduct tax at source for work contracts, excluding individuals and HUFs from the class of deductors; a proprietary concern may be regarded as an Individual under the Act, but formal departmental clarification is recommended because the statutory definitions do not explicitly address a proprietorship's status.