TDS liablity under State Works Contract Tax

[Kailash Joshi]

Dear Sir, Our company is engaged in providng of Services in field of Civil/Electrical etc. 1. Company take contract from client based on % of Service Charges based on Actual Value of Contract exected (thus acting as consultant). 2. In some cases client pays 100% advance and payemnt to contractor is released by Consutant on behalf of client. Thus, in above citcumstances Whether the liability to deduct TDS under State Work contract Tax is of 'Consultant or Client'

AI Summary

Consultant Questions TDS Liability Under State Works Contract Tax for Advance Payments to Contractors A company providing civil and electrical services is questioning the liability for deducting Tax Deducted at Source (TDS) under the State Works Contract Tax when acting as a consultant. The company sometimes receives 100% advance payment from clients and releases payments to contractors on the client's behalf. The query is whether the TDS liability falls on the consultant or the client. In response, it was advised to consult local VAT laws and possibly seek guidance from a local consultant for clarification.