deduction of wct udner tnvat -reg

[Ramakrishnan Seshadri]

Dear Sir

we are constructing one shed at our factory. The construction contractor has submitted the bill. We have deducted the wct amount under tnvat act of 2%.

Now our question is the construction contractor asking us to remit the wct tax amount deducted in their assessment circle along with FormR. But usually we deduct and pay the wct amount to our assessment circle with Form R.

Could the experts please clarify whether the request made by the contractor can be made or the procedure followed by us is correct.

Thanks & Regards,

S.Ramakrishnan

AI Summary

Contractor Challenges WCT Deduction Location; Seeks Remittance in Own Assessment Circle per TNVAT Act Section 13 Guidelines. A company constructing a factory shed deducted a 2% Works Contract Tax (WCT) under the Tamil Nadu Value Added Tax (TNVAT) Act from the contractor's bill. The contractor requested that the deducted WCT be remitted in their assessment circle with Form R, contrary to the company's usual practice of remitting it in their own assessment circle. An expert advised consulting Section 13 of the TNVAT Act, 2006, along with relevant rules and provisions, to clarify the correct procedure.