Kindly clear my doubt. We are selling some components to our Vendors.After assembling some parts the vendor again sold the material to us. How can we deduct TDS from 01.10.09. Example: we sold as Material cost Rs.100.00 (+) Excise (8%)& Cess (3%) Rs. 8.24 Sub Total Rs.108.24 (+) Tamilnadu VAT 4% Rs. 4.33 TOTAL Invoice Value Rs.112.57
After adding some parts vendor sold to us like
Material cost Rs.110.00 (+) Excise (8%)& Cess (3%) Rs. 9.06 Sub Total Rs.119.06 (+) Tamilnadu VAT 4% Rs. 4.76 TOTAL Invoice Value Rs.123.82
The transaction is purely sale and purchase transaction. Hence no TDS is applicable.
The transaction does not seem to be job work either. Your vendor is not working upon the material supplied by you, rather they are merely adding more components.
This is purely transaction of sale purchase of material.
If the Goods would have moved to vendor under rule 57F of central excise. Then the same goods has been removed for jobwork. In that case we need to go for calculations of cost of jobwork. And then TDS applicable on such cost as contractor.
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