sir,
In a works contract by name 'Improvements to the computer room'....which includes cement work,painting work,electrical work, and supply and installation of tube light fittings, fans, chairs,air conditioner etc.
In this connection, I would like to know the rule position relating to TDS under APVAT ACT. Whats is the correct procedure to deduct TDS.Whether to deduct 5 percent on total value of work done or to deduct 5 percent vat on civil work portion leaving the supply portion without TDS.
yours sincerely
Chakravarthy s.n.
Debate on Applying VAT and TDS for Works Contract in Computer Room Improvements Under APVAT Act A query was raised regarding the applicability of VAT and TDS under the APVAT Act for a works contract involving improvements to a computer room, including various installations and civil work. One response suggested deducting TDS on the gross value of the contract, treating it as an indivisible works contract, and checking APVAT provisions. Another response advised splitting the work to apply VAT on raw materials and TDS and service tax on the remaining value. If splitting is not feasible, the entire contract should be treated as a lump sum with VAT and TDS applied accordingly. (AI Summary)
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