tds on wct under tnvat

[Ramakrishnan Seshadri]

Dear Sir,

We are the manufacture of automobile parts. We are going to expand our building . The contract is given to Foreign construction company who is going to construct the building.

Our question is what is procedure under tnvat act for deducting tds on wct for civil construction. How to deduct tds on wct.Whether the foreign company has to get registered with the tnvat or what is the procedure.

Kindly guide us.

Thanks and Regards,

S.Ramakrishnan.

[Ramanujam Varadarajan]

WCT TDS is applicable if Works contract involves transfer of property in goods under local TNVAT Act. On the other hand, if the materials are supplied on CST basis from outside TN under the works contract, WCT TDS would not apply.

AI Summary

Works contract TDS applies only when the contract effects transfer of goods; CST-supplied materials exclude TDS. Applicability of WCT TDS under TNVAT depends on whether the works contract effects a transfer of property in goods within the State; if so, TDS on WCT applies. Where materials are supplied from outside the State on a CST basis and no local transfer of property in goods occurs, WCT TDS does not apply.