Notification specifies Class of Employers whether registered or not registered under MVAT Act who are required to deduct tax while making payment to contractors toward works contract executed by them. Notification also gives rate of tax to be deducted. No deduction shall be made where the amount or the aggregate of the amounts payable to a dealer by such employer is less than rupees 5 lakh during any year, except in case of co-operative housing society mentioned in Sr. No. 9.For detail rules and provisions of MVAT see link>> TDS on Works Contract In Maharashtra
NOTIFICATION
Commissioner of Sales Tax, Maharashtra State,Vikrikar Bhavan, Mazgaon, Mumbai, Dated the 29th August, 2005. Maharashtra Value Added Tax Act, 2002.
No.JC(HQ)1/VAT/2005/97 In exercise of the powers conferred by sub clause (i) of clause (b) of sub section(1) of section31 of the Maharashtra Value Added Tax Act, 2002 (Mah.IX of 2005), and in supersession of Notification, issued by the Commissioner of Sales Tax No.VAT1505/CR123/Taxation-1, dated the 1st April, 2005, Commissioner of Sales Tax, Maharashtra State, Mumbai, hereby, notifies the classes of employers specified in column (2) of the, Schedule appended hereto, to be the employers liable to deduct the tax or such amount of tax specified in column (3) of the said Schedule, from and out of the amount payable, excluding the amount of tax, if any, separately charged by the contractor, by the said employer to a dealer to whom a works contract has been awarded.
SCHEDULE| Serial No. | Classes of Employers | Amount to be deducted |
(1)
| (2) | (3) |
| (1) | The Central Government and any State Government, | Two percent of the amount payable as above in the case of a contractor who is a registered dealer and four† |
| (2) |
All Industrial, Commercial or Trading undertakings, Companies or Corporations of the Central Government or of any State Government, whether setup under any special law or not, and a Port Trust setup under the Major Ports Act, 1963,
| -- do -- |
| (3) | A Company registered under the Companies Act,1956, | -- do -- |
| (4) | A local authority, including a Municipal Corporation, Municipal Council, Zilla Parishad, and Cantonment Board, | -- do -- |
| (5) | A Cooperative Society excluding a Cooperative Housing Society registered under the Maharashtra Cooperative Societies Act, 1960, | -- do -- |
| (6) | A registered dealer under the Maharashtra Value Added Tax Act, 2002. | -- do -- |
| (7) | An Insurance or Financial Corporation or Company; and any Bank included in the Second Schedule to the Reserve Bank of India Act,1934, and any Scheduled Bank recognised by the Reserve Bank of India. | -- do -- |
| (8) | Trusts, whether public or private | -- do -- |
| (9) | A Cooperative Housing Society registered under the Maharashtra Cooperative Societies Act, 1960 which has awarded contracts of value aggregating to rupees 10 lakh or more in the previous year or as the case may be, in the current year. | -- do -- |
Note: No deduction shall be made where the amount or the aggregate of the amounts payable to a dealer by such employer is less than rupees 5lakh during any year.
(B. C. KHATUA )
Commissioner of Sales Tax Maharashtra State, Mumbai.
