Like Income tax deducted at source (TDS), VAT laws also contain a provision requiring deduction of VAT at source at the point of payment of amount on works contract executed within the State. The applicability of VAT deduction, rate, procedure and method of deduction differs from State to State. You may refer to the relevant State VAT Act for further details.
Also download an analysis on servie tax on work contracts from the link below
https://www.lawyersclubindia.com/share_files/files_display.asp?files_id=1049
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