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Value Added Tax must be deducted in Contracts and must be paid immediately to Commercial Tax department
Posted on: 03/Oct/2015 3:05:31 PM
Tamil Nadu state government has ordered that the Value Added Tax must be deducted on the various contracts and this should be paid immediately to the department of commercial taxes.
As per the Tamil Nadu Value Added Tax Law 2006, section 13, 2% VAT must be deducted for building construction/maintenance contracts, 5% VAT must be deducted for all other contracts by the individual or the company while paying the money to the contractors and deposit this amount at the office of the Commercial Tax Department before 20th of each month.
All individuals, central & state government departments, local administration centers, companies, associations, and private parties who have entered into contract agreements should deduct VAT as mentioned above and pay the same to the relevant commercial tax department office. If the contracting agency (individual, government sector or private group/company) is not registered under the Tamil Nadu Value Added tax Law, they have to pay the deducted VAT to commercial Tax office in the nearest area.
For the Chennai Region, VAT deducted can be paid at the office of the Commercial tax department, Commercial Tax Building, Greams Road. If the contracting agency ((individual, government sector or private group/company) fails to deduct VAT and pay to the commercial tax department, action will be taken to recover the same along with 150% penalty and 2% interest per month.
For details regarding VAT, visit website: www.tnvat.gov.in
Or call toll-free telephone numbers: 1800 103 6751
