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

[YAGAY andSUN]

2[(1) Any person, not being an individual or a Hindu undivided family, who is responsible for making payment to any dealer (hereinafter in this section referred to as “the contractor”) for discharge of any liability on account of valuable consideration payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, for value exceeding twentythousand rupees or such amount as may, by order in writing published in officialGazette, be notified by the Commissioner from time to time, shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by any other mode, whichever is earlier, deduct tax thereon at the rate of 3[four] percent.

4[***]

5[PROVIDED that the rate of deduction of tax (TDS) shall be 6% in case of contractors not registered under this Act.]

AI Summary

TDS on works contract payments must be deducted by non-individual payers above the prescribed threshold, higher rate for unregistered contractors. A person other than an individual or HUF paying a contractor for transfer of property in goods under a works contract must deduct tax at the time of credit or payment, whichever is earlier, where the contract value exceeds the prescribed threshold; the rate is four percent, with a higher six percent rate if the contractor is not registered under the Act.