Tuesday, November 15, 2011

Under Punjab VAT Act TDS has to be deducted from Payments made for Works Contracts exceeding 5% at the time of making payment to the Contractor. THIS RATE HAS BEEN INCREASED TO 5% . Public Notice issued dated 09-11-2011 by Excise and Taxation Department, Punjab is given below.

Under Punjab VAT Act TDS has to be deducted from Payments made for Works Contracts exceeding 5% at the time of making payment to the Contractor. THIS RATE HAS BEEN INCREASED TO 5% . Public Notice issued dated 09-11-2011 by Excise and Taxation Department, Punjab is given below.

PUBLIC NOTICE, EXCISE AND TAXATION DEPARTMENT
GOVT. OF PUNJAB

Attention:   VAT Dealers/Taxable persons/Lawyers/Chartered Accountants/Cost Accountants/All Govt. Agencies.

The Govt. of Punjab has recently amended Section 27(1) of the Punjab Value Added Tax, 2005, dealing with Works Contract. Every contractee(executing agency), who is responsible for making payment to any person (contractor) shall deduct an amount equal to 5% of such sum payable on account of such work contract executed. This sum shall be deducted as T.D.S (@ 5%) by the contractee at the time of making payment to the contractor, either in cash or in any other manner for contracts exceeding Rs 5 Lakhs for single work/job assigned. This shall be applicable with immediate effect.


A.            VENU PRASAD, IAS,
EXCISE & TAXATION COMMISSIONER,
PUNJAB

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