Maharashtra Government clarifies on Tax Deduction at Source after July 01, 2017

Mar 19, 2019 | by Avantis RegTech Legal Research Team


The State Government of Maharashtra has clarified on Tax Deduction at Source (TDS) as per Section 31 of Maharashtra Value Added Tax Act, 2002 after July 01, 2017.

Section 31 of Maharashtra Value Added Tax Act, 2002 has been amended by Maharashtra Act No. XXVI of 2018 dated March 31, 2018. As a result certain queries have been received seeking clarification with regards to applicability of TDS under Maharashtra Value Added Tax Act, 2002 after July 01, 2017.

The amended provisions are explained as follows:

a)An employer should deducted tax (TDS), in respect of a works contract, executed upto June 30, 2017, even if the amount is payable after June 30, 2017. But, in any case, no VAT Tax shall be done by an employer after December 31, 2018.

b)No employer, including Government departments, shall deduct TDS in respect of amount payable to contractor after December 31, 2018.

c)The Tax deducted at source and paid in the Government Treasury between July 01, 2017 to December 31, 2018 by an employer may be claimed as credit by the principal contractor or a sub – contractor.

d)Principal contractor can claim credit of such TDS amount by filing a revised return, for the priod ending on June 31, 2017, on or before January 10, 2019.

e)Sub – contractors can claim credit of TDS amount transferred to him by the principal contactor, by filing a revised return, for the period ending on June 31, 2017, on or before January 15, 2019.

f)In case business is discontinued or otherwise disposed of or has been transferred by principal contractor prior to July 01, 2017, then the last return should have been revised on or before January 10, 2019.

No employer shall deduct TDS after the December 31, 2018 and no principal contractor and sub-contractor shall be eligible to take credit of the TDS, except in the manner as aforesaid. 

[Trade Circular No. 10 T of 2019]

Click here to download the Circular.

 

 


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