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tax on job work

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26 May 2009 We wish to start doing job work on manufacturing for an exporter.
all materials will be supplied by the party and we will add just the labour content

What tax will we be subject to
thank you

26 May 2009 You are liable to service tax if the labour charges exceeds 10L during the year.

26 May 2009 Apart from this the exporter will deduct a tax @ 2% + applicable Surcherge and education cess from the payment made to you unless you obtain a certifcate from the TDS officer of your jurisdiction for non deduction or lower deduction of tax.




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