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Gujarat VAT & CST

Gujarat VAT Rules Amendment – TDS Procedure Notified

January 8, 2010 ⋅

We had informed you vide our earlier Circular dated 7-Dec-2009 about the TDS provisions under the Gujarat VAT laws. As per provision of Section-59 B of the Gujarat VAT Act 2003, a person who awards “specified works contract” of Rs.One Crore or more is responsible for deduction of VAT from the payment of “specified sale price” to the contractor at the prescribed rate.

The Gujarat Government has vide notification dtd. 24-Dec-2009 made following amendments to the Gujarat VAT Rules 2006 in relation to the TDS provisions.

For TDN Registration:

(1) Person responsible for Tax deduction must make an online application for allotment of Tax Deduction Account Number (TDN) in Form-706 within 30 days and also file a copy of the online application within 7 days with the department along with specified documents.

(2) TDN-Registration Certificate will be issued in Form-707.

For Routine Compliance:

(3) The concerned dealer claiming the tax credit (deductee) is required to submit a statement in Form-216A along with monthly or quarterly return within 30 days from end of the month or quarter as applicable to the dealer.

(4) Amount of Tax deducted at source is required to be paid within 22 days in Form-207 from end of the month or quarter as applicable to the dealer (deductor).

(5) The deductor shall issue TDS Certificate in Form-703 in duplicate. The Original is to be given to the contractor/ sub contractor and Duplicate to be retained by the deductor. It must be ensured that the TDS Certificates are serially & mechanically numbered.

(6) The Deductor shall maintain for each year a separate account in Form-705, showing amount of tax deducted, certificates issued and amount remitted to the government.

(7) The deductor shall submit (E-File) quarterly return in Form-704 within 30 days from the end of each quarter.

(8) Application for cancellation of TDN Registration is to be made in Form-708.

Concerned clients are requested to contact us for TDN-Registration.

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