Liability - Central works contract Under DVAT

[Atul Anand]

Our company is registered under DVAT and we are engage in Works Contract Activity. I want to know what is the liabilty in the case of Central Works Contract. This is our liabilty to deposit Central works contract Under DVAT Act or Party's liability. We have some contract with Indian Oil and Indian Oil cleary told to us raise the bill without works contract tax because Indian Oil will deposit works contract tax

AI Summary

Company Must Pay Central Sales Tax on Interstate Works Contracts; Responsible for Reporting and Filing Returns A company involved in works contract activities under the Delhi Value Added Tax (DVAT) sought clarification on its liability for central works contracts. The company, which has contracts with Indian Oil, was instructed by Indian Oil to issue bills without including works contract tax, as Indian Oil would handle the tax deposit. Two responses clarified that works contracts are taxable in the state where the contract is executed, requiring payment of Central Sales Tax (CST) for interstate material transfers. The contractor is responsible for reporting sales, tax liabilities, and filing returns, even if tax deduction at source (TDS) is applicable.