composite contract

[saket s]

We have outsourced a contract for Interiors - Composite contract - Material & labour to be executed at Vijayawada.The contractor does not hold registration in AP.He has a registration in Telangana.

What is the rate of TDs to be deducted on the contract value as a whole, if he has not registered in AP. Liability of the contractee to deduct and issue certificate.

If the contractee has to deduct, on what value and at what percentage should TDS be deducted and remit to the Govt and issue certificate.

Thanks

Saket

AI Summary

TDS on interstate works contracts: state VAT TDS applies only if the contractor is locally registered; CST covers materials.
No provision in the CST law requires deduction of TDS on interstate works contracts; CST governs taxability of the material portion. State VAT TDS applies only if the contractor is registered in the State where the work is performed and the State VAT law asserts jurisdiction.