TaxTMI 
TaxTMI 
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
Liability - Central works contract Under DVAT
12 Apr 2008 
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Works contract tax liability remains with the contractor; payer may deduct TDS and CST applies for interstate goods.
Works contract tax is payable in the State where the agreement is executed or the contract performed; movement of goods across States triggers Central Sales Tax treatment as interstate sales. Although the payer may be obliged to deduct and remit tax (TDS) under the VAT regime, the primary duty to report the sale, declare tax liability, file returns and pay tax after adjusting TDS remains with the person executing the works contract. (AI Summary)
Works contract tax is payable in the State where the agreement is executed or the contract performed; movement of goods across States triggers Central Sales Tax treatment as interstate sales. Although the payer may be obliged to deduct and remit tax (TDS) under the VAT regime, the primary duty to report the sale, declare tax liability, file returns and pay tax after adjusting TDS remains with the person executing the works contract. (AI Summary)