Delhi vat section 36A

[VAMSI KRISHNA]

Sir,

What is the contract value limit for to deduct TDS on works contract as per delhi vat 2004

AI Summary

Clarification on TDS deduction for works contracts: 4% for registered, 6% for unregistered if value exceeds 20,000. A query was raised regarding the contract value limit for deducting TDS on works contracts under the Delhi VAT Act 2004. The response clarified that any entity, excluding individuals and Hindu undivided families, responsible for payments to contractors for works contracts must deduct tax if the contract value exceeds twenty thousand rupees. The deduction rate is 4%, but increases to 6% for contractors not registered under the Act. The rate and threshold may be updated by the Commissioner through official notifications.