Saturday, March 11, 2017

telangana commercial tax: tds by certain bodies organisations

Office of the
Commissioner of Commercial Taxes
Telangana State :: Hyderabad

CCT’s Ref No. AIII(1)/113/2013,                                   
Dt. 07-03-2017

V. Anil Kumar, I.A.S.,                                              
Commissioner (CT)

Sub:- Telangana Value Added Tax Act, 2005 – Deduction of tax at source by certain bodies / organisations and remittance of tax deducted at source to the Government – Issue of notification – Certain representation filed by OMCs – Issuance of certain guidelines - Regarding.

  1. Act No.9/2017, Dt: 19.01.2017 (Published in Telangana Gazette on 20.01.2017).
  2. Gazette Notification in CCT’s Ref. No. A(1)/41/2016, Dt: 16-02-2017.
  3. Representation of Oil Companies i.e M/s IOCL, M/s BPCL & M/s HPCL, Dt. 22-02-2017.


The attention of all Deputy Commissioners (CT) in the State is invited to the Subject and references cited.

In the reference 3rd cited, M/s Indian Oil Corporation Ltd., 
M/s Bharat Petroleum Corporation Ltd. & M/s Hindustan Petroleum Corporation Ltd., represented that intra-OMC transactions are numerous and also exempt from Tax under the TVAT Act. They also represented that as the monthly tax payable by them is huge and many sales are made to Public Sector Organizations, they will be facing liquidity problems if TDS is made on such sales. They also stated that all the OMCs are remitting the applicable taxes to the Government of Telangana on due dates on the sale of goods made to the persons / bodies / organizations / authorities notified in the reference 2nd cited. Therefore, in view of the difficulties explained above they requested to grant exemption to the OMCs from the contents of the above notification. 

After careful examination of this issue the following guidelines are issued in respect of the OMCs:

  1. All the purchases and sales of goods, made among the Oil Marketing Companies (OMC) mentioned in Explanation-IV of Schedule-VI to the TVAT Act with each other, are herewith exempted from TDS. 
  2. Further, no Tax Deduction at Source shall be made by the Public Sector Organizations on the Purchases made from OMCs mentioned in Explanation-IV of Schedule-VI to the TVAT Act. 

Hence, all the Deputy Commissioner (CT) in the State are requested to inform all the organizations and State Government Departments mentioned in the Gazette notification dt. 16-02-2017 and follow the above guidelines scrupulously without any deviation.

Sd/- V. Anil Kumar
Commissioner (CT)

All the Deputy Commissioners (CT) in the State.
All the Assistant Commissioners (CT) in the State.
All the Commercial Tax Officers in the State.

Copy to M/s IOCL, M/s BPCL & M/s HPCL.


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