CIRCULAR 11/2015-16 – No. F.16 (95) Tax/CCT/14-15/2179 – Dated:- 28.01.2016
It has been brought to knowledge that under the provisions of sub rule(1) of rule 40 of RVAT Rules, 2006 an awarder is under obligation to obtain awarder identification certificate if amount of works contract awarded by him in a financial year exceeds Rs. 10.00 lacs but it is not clear that an awarder has to deduct tax at source or not if the said amount does not exceeds 10.00 lacs.
The provisions of sub rule(1) of rule 40 are clear and unambiguous that an awarder shall obtain awarder identification certificate if amount of works contract awarded by him in a year exceeds Rs. 10.00 lacs.
Therefore, an awarder is not under obligation of the said provisions to obtain awarder identification certificate if the amount of works contract awarded by him in a year does not exceed Rs.10.00 lac.
It is further clarified that if an awarder has obtained awarder identification certificate and so long as his certificate remains in force, be liable to deduct tax at source irrespective of amount of works contract awarded by him in a financial year.
Regarding clarification of Tax Deduction At Source (TDS) by an Awarder under Rule 40 of RVAT Rules, 2006
Published On - February 4, 2016
