TDS is a new concept in Sales Tax laws of the State. Many dealers and even sales tax practitioners do not deal in TDS under sales tax. It the most untouched area in the State Vat. This share will provide you a brief description of TDS Concepts under DVAT Act.

1. TDS UNDER DVAT ACT
 DEDUCTION OF TAX AT SOURCE UNDER
DELHI VALUE ADDED TAX ACT
Presented By:
CA Rohit Chauhan
+91 9953141430
Email: rpcassociates@outlook.com

2. TDS UNDER DVAT ACT
 Deduction of TDS under DVAT Act:
- In addition to the responsibility of the contractor or the
contractee, as the case may be, to deduct TDS at source under
section 194 C of the Income Tax Act of India.
- Every contractee is mandatorily required to comply with the
provisions of the Income Tax Act and DVAT Act separately in
respect of deduction of tax at source.

3.  Who is Liable to Deduct TDS
- Every person
- other than an individual and Hindu undivided family,
- responsible for making any payment to any contractor or sub-
contractor
- for discharge of any liability on account of valuable consideration
- payable for the transfer of property in goods (whether as goods
or in some other form)
- in pursuance of a work contract.
TDS UNDER DVAT ACT

4. TDS UNDER DVAT ACT
 Nature of Works Contracts on which TDS is to be
deducted:
- Civil Contracts, such as, Civil Construction, improvement,
modification, repair & maintenance, etc. of any immovable
property, including a building or a complex- residential or
commercial.
- Repair & maintenance of any movable property, including
vehicles, annual maintenance contracts and other similar
contracts.
- All other types of work contracts, including those involving
movable goods, not specified elsewhere.

5. TDS UNDER DVAT ACT
 When to deduct TDS:
- At the time of credit of such sum to the account of contractor or
sub-contractor
OR
- at the time of payment thereof.
-whichever is earlier.

6. TDS UNDER DVAT ACT
 Rate of TDS:
 Contractor Registered under DVAT Act: 4%
 Contactor Not registered under DVAT Act: 6%
 TDS would be deducted at the above specified rate on the
sum paid/payable towards transfer of property in goods.

7. TDS UNDER DVAT ACT
 Exemption:
 TDS provisions are applicable only if the value of individual
Contracts or sub-contracts exceeds Rs.20,000/-

8. TDS UNDER DVAT ACT
 Registration to obtain Tax Deduction Account Number
(TAN):
 Every person liable to deduct TDS shall apply for TAN in
Form DVAT-44 within seven days from the date on which tax
was deducted or deductible.
 TAN number is issued in Form DVAT 45.

9. TDS UNDER DVAT ACT
 Deposit of TDS:
 Deposit of TDS by the deductor on or before 15th day of every
following month.
 Deposit of TDS by electronic mode of payment is mandatory.

10. TDS UNDER DVAT ACT
 Penalty and Interest of non-deduction or non-payment
of TDS:
 A sum not exceeding twice the amount so deductible or payable.
 Simple interest of 15% per annum from the date applicable till
the date of compliance.

11. TDS UNDER DVAT ACT
 Issue of TDS Certificate:
 TDS Certificates can be issued after deposit of TDS on
monthly basis before filing the TDS return unlike Income
tax which requires filing of TDS return for issuing the
certificates.
 The person making the deduction shall furnish to the contractor
or sub-contractor as the case may be TDS certificate in Form
DVAT-43 along with the copy of challan for the payment of the
Tax.

12. TDS UNDER DVAT ACT
 Time Limit of issuing of TDS Certificate:
 Certificate should be issued to the contractor in
duplicate within 7 days from the date of deposit of
TDS.
 A penalty of Rs.100 per day would be payable from
the day of liability till the certificate is actually
issued.

13. TDS UNDER DVAT ACT
 TDS Return:
 Deductor shall file TDS return in Form DVAT-48 within a
period of 28 days from the end of the quarter.
 Therefore Due dates for all the quarters are:
 Quarter 1 28th July
 Quarter 2 28th October
 Quarter 3 28th January
 Quarter 4 28th April

14. TDS UNDER DVAT ACT
 Penalty of failure to apply for TAN or file TDS
return:
 Penalty of Rs.200 per day until the failure is rectified
but cannot exceeds Rs.20,000/-

15. TDS UNDER DVAT ACT
 Preservation of TDS Certificate:
 Dealer claiming adjustment of TDS in his tax return shall
preserve the certificates for a period of 7 years and shall produce
to commissioner on demand.

16. TDS UNDER DVAT ACT
 TDS is not deductible on
- Inter – state sale, sale in the course of import or labour and
services
- No Tax can be deducted on the payment/credit on job contracts
having no material involved even if the contract between the
parties requires for deduction of tax at source.

17. TDS UNDER DVAT ACT
 TDS not deductible in supply contracts:
 DVAT TDS is applicable only on works contracts.
 Therefore no TDS can be deductible on pure supply contracts of
goods.

18. TDS UNDER DVAT ACT
 Incomplete Provision of TDS under the DVAT
Act
 No assessment of TDS deposited so far.

19. TDS UNDER DVAT ACT
Presented by:
CA Rohit Chauhan
(Partner)
Rohit Pankaj & Associates
Chartered Accountants
Contact at: +91 9953141430
Email: rpcassociates@outlook.com