VAT-Works Contract

As per Circular No 16/2018 dated 26/06/2018:

With regard to many Government works, though works have been completed on or before 30/06/2017, payment of contract amount is yet to be disbursed. Majority of such contractors are paying tax under section 8(a) of KVAT Act. Before making such payment, tax has to be deducted as per section 10 of KVAT Act and certificate in Form 20 C has to be issued to the contractor.

Since GST has been rolled out from 01/07/2017, details of contractual amount received and TDS can be furnished only by revising the return for the month of June 2017.

So, in order to facilitate the contractors to file return for such amount received, permission to revise the return for the month of June 2017 will be granted only if the instructions issued vide Circular No 16/2018 dated 26/06/2018 are followed.

For details of the Circular , Click Source KVAT