Deduction of TDS and Vat Liability

[Guest]

My Company is executing a civil job in State of AP (a project of constructing a building for a power project). The billing with my customer is on milestone basis (i.e. Billing is on % completion of building). How would the customer deduct TDS on my final billing. Further how to take care of VAT liability on selling point.

[Ravi Chopra]

TDS is required to be deducted on amount credited or paid basis. So the customer is required to deduct TDS as per the basis of treatment in his books of account.

AI Summary

TDS deduction on credited or paid basis: payer must deduct per its books; VAT treatment depends on selling point. TDS is required to be deducted on the amount credited or paid basis; the customer must deduct TDS in accordance with the basis on which the amount is treated in the customer's books of account. A separate query about VAT liability at the selling point is noted but not answered.