TaxTMI 
TaxTMI 
Please brief STDS as per sales tax with an example , because i am confused about STDS
STDS as per West bengal Sales tax
29 Feb 2012 
3 Replies 
15604 Views Asked by
Works contract tax deduction rates differ for registered and unregistered contractors under sales tax, affecting withholding obligations.
For STDS on works contracts involving transfer of property in goods, deduction at source depends on the contractor's VAT registration status: a reduced rate applies when the contractor is validly registered under the VAT Act on the date of payment, and a higher rate applies otherwise. The payer's withholding obligation is therefore determined by registration validity at payment; consult Section 40 of the VAT Act and associated rules for detailed application. (AI Summary)
For STDS on works contracts involving transfer of property in goods, deduction at source depends on the contractor's VAT registration status: a reduced rate applies when the contractor is validly registered under the VAT Act on the date of payment, and a higher rate applies otherwise. The payer's withholding obligation is therefore determined by registration validity at payment; consult Section 40 of the VAT Act and associated rules for detailed application. (AI Summary)