Applicability of Tds

[CA.ANCHAL RASTOGI]

A of U P give a contract to B of Haryana to supply & commission a Plant at U P. Whether A is liable to deduct TDS under prov. of U P VAT Act.

[Surender Gupta]

A VAT consultant would help you out. But, the transaction appears to be a interstate transaction for which a selling dealer is not liable to pay UP VAT in UP. Therefore, it appear that TDS should not be deducted by the A but you need to get more specific answer to this issue from the alternate source.

AI Summary

TDS applicability on interstate supply: advisor indicates withholding under state VAT not indicated, subject to confirmation. The question is whether A (Uttar Pradesh) must deduct TDS under UP VAT when B (Haryana) supplies and commissions a plant in UP. The reply indicates the transaction appears to be an interstate transaction, treating the supplier as not liable to pay UP VAT in UP, and concludes that deduction of TDS by A would not be indicated, subject to obtaining further specific advice.