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Tds on job work
Dear Sir,
We are a munufacturing industries in which we make Job work to our Delhi Vendor, His Bill Stracture as follow:-
Total Value Rs. 100000.00
Less:- Job Work charges Rs. 20000.00
Net Value for Material Rs. 80000.00
CST 2% on 80000.00, Rs, 1600.00, Then total bill value is Rs.
G Total Rs. 100000.00
CST Rs. 1600.00
Total Amt .Rs. 101600.00, Hence plz suggest me that on which amt we will charge TDS ?.
Replies (1)
Hey virendra, answer to your case of work contract being manufacturing or supplying product according to specification(by using material from such customer),tds shall be deducted on the invoice value excluding the value of material purchased from such customer,if such value is mentioned separately in the invoice.where the material component has not been separately mentioned in the invoice,tds shall be deducted on the whole value of the invoice.
Hence tds will be deducted on Rs 20,000 only if mentioned on invoice seperately.
Cheers !
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