Works Contract Under Service Tax and Haryana VAT

[Vinay Sharma]

Dear Sir,

1-If a contract is treated as 'Works contract' under service tax should it be treated as 'Works contract' under Haryana VAT Act also.

2- In case of Works contract, In Haryana, the Contractee is required to deduct 4% TDS. Can the contractee, while deducting TDS may take the advantage of abatements provided under Rule 25 of Haryana Value Added Tax Rules 2003.

3- Practically most of the works contractors like Painters, Pest Controllers, Water proofing work, are not registered in Service Tax and/or HVAT. In such cases, while discharging own liabililty of Service Tax and VAT what precautions should be taken by the Contractee.

With Thanks and best regards

AI Summary

Works Contract Classification Confirmed Under HVAT Act; VAT Rate on TDS Raised, Unjust Enrichment Not Applicable A discussion on a forum addresses whether a contract classified as a 'Works Contract' under service tax should also be treated as such under the Haryana VAT Act. It is confirmed that it can be, as per the HVAT Act definition. The conversation also covers the increase in VAT rate on TDS from 4% to 5% and the procedures for filing returns and issuing TDS certificates. The potential for unjust enrichment of contractors due to abatements is debated, concluding that unjust enrichment is not applicable. The forum also offers professional services in indirect taxation.