Tds
This query is : Resolved
12 November 2011
I am a garment manufacturer. From cutting upto sticthing the work is done on job work basis. I want to know do I need to register for TAN no. and cut TDS before making any payment to the labour. If the answer is yes what is rate of TDS.
13 November 2011
Dear Mr Avishake
TDS need to be deducted only when the salary (wages paid) is taxable in the hands of your employees (labor).
TDS need to be deducted only when the salary (wages paid) is taxable in the hands of your employees (labor).
14 November 2011
TAN number is required to obtained for any assessee liable to deduct the TDS;
In your case, we need to TEST as under;
whether the work performed by labour, or jobworkers?
The work is performed by Jobworkers, if raw material provided by the manufacturer and job work is performed beyond the premises. The rates are fixed on per piece basis. The TDS is required to be deducted if jobwork charges fatched the limit of Rs. 50000 per year.
If the work is performed within the factory premises and workers hired by the manufacturer directly. The same are treated as employee and all relevant rules would be applicable including minimum wages rules. No need to have TAN numbers unless taxable limit under Income Tax Act reached.
Hope, now I could be able to made it clear to some extent.
Regards
K.L.Paliwal
In your case, we need to TEST as under;
whether the work performed by labour, or jobworkers?
The work is performed by Jobworkers, if raw material provided by the manufacturer and job work is performed beyond the premises. The rates are fixed on per piece basis. The TDS is required to be deducted if jobwork charges fatched the limit of Rs. 50000 per year.
If the work is performed within the factory premises and workers hired by the manufacturer directly. The same are treated as employee and all relevant rules would be applicable including minimum wages rules. No need to have TAN numbers unless taxable limit under Income Tax Act reached.
Hope, now I could be able to made it clear to some extent.
Regards
K.L.Paliwal
14 November 2011
Job work limit have been raised way back. Current limit is 30000 per bill and 75000 for a year since july 2010.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Tds on building rent monthly
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
