applicability of VAT under APVAT ACT

[Asked by Guest]

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.

AI Summary

Works contract treatment affects TDS and VAT allocation; split contracts allow VAT on supplies and TDS on service portion.
The issue is whether a composite works contract for improvements, including supply-and-installation items, is an indivisible works contract-necessitating tax deduction at source on the gross contract value and lump-sum VAT treatment-or whether it can be split so that VAT applies to the supply/raw-material component and TDS applies to the remaining works/service portion, with service tax implications on services.