TDS Rate Applicable

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Rashi (Querist)
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01 May 2008 A individual's income is job work income from manufacturing of diamonds.He doesnot have any machinery. he gives the same to other individuals for manufacturing.Also he pays assortment charges on contract basis. Whether he is required to deduct TDS u/s. 194C @2% or he can deduct @1% since the person manufactring and doing assortment are sub contractors.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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01 May 2008 if he is individual & his total turover/gross receipt is less than 40 lakhs then TDS provision is not applicable
if total turnover/gross receipt is greater than 40 lakhs then tds provison is applicable if you are given labour charge direcly from your goods then tds is 2%+ec+shec or you will collect from others & gives for labour charges to others then TDS is 1%+ec+shec is applicable

Jitender Garg

Jitender Garg (Expert)
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02 May 2008 I think it is a case of subcontract, so tds will ne done as 1%

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R.V.RAO

R.V.RAO (Expert)
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02 May 2008 TDS PROV. FOR INDIVIDUALS APPLY ONLY IF HE/SHE CROSSES RS. 40 LAKHS TURNOVER/GROSS RECEIPT P.A LIMIT.
IF APPLICABLE THEN THE TDS RATE FOR SUBCONTRACTOR IS 1% PLUS SURCHARGE IF APPLICABLE AND EDU CESS 3%ON TAX.
R.V.RAO