Sunil Kumar Shrivas (Job) (232 Points)
08 September 2010Dear all,
We order to a firm for designing & printing of our company's brochure. They raised invoice with VAT4% including cost of brochure & printing & raised a separate invoice with Service tax 10.30% for brochure designing. can anybody suggest which invoice attract TDS while making payment >50000 & also define it is comes under purchase or jobwork.
somebody suggest me you should deduct TDS on both bill bcoz it is purchase, TDS applicable on non sellable item. Kindly clear it.
Thanks
Parth Dewangan
(Job)
(87 Points)
Replied 08 September 2010
Dear Mr.Sunil,
As the firm has segregated the work between jobwork and purchase, tds to be deducted on jobwork not on purchase. it has raised seperate bills for printing and designing. Tds will be deducted only from the bill of designing if the value exceeds Rs. 30000.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 08 September 2010
AGREED WITH ;PARTH
REGARDS,
MANOJ
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 09 September 2010
yes tds would be deducted on job work only
Mayur Arora
(CA Final)
(295 Points)
Replied 09 September 2010
Yes. TDS to be deducted if one Jobwork exceeds Rs. 30,000/- or aggregate amount exceeds Rs. 75,000/-.
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 09 September 2010
TDS to be deducted, if job work charges not given seperately then tds will be deducted on full amount.. Pl correct me if i am worng.
CA MARUTHI GANDHI
(JOB)
(60 Points)
Replied 09 September 2010
Yes i agree with Parth.
If the invoice includes VAT then it will amounts to sale of goods so TDS need not be deducted where as in second case they raised a service invoice so we have to deduct TDS by considering it as Consultancy or Professional service. So in my opinion TDS to be deducted @ 10% U/s 194J.
If any disagreement with my argument please let me know.
chirag daxini
(CA final)
(73 Points)
Replied 09 September 2010
agreed with parth
TDS to be deducted on jobwork charges excluding Service tax
Parth Dewangan
(Job)
(87 Points)
Replied 09 September 2010
Yes mr. Deepak,
You r correct. If both the work has not been segregated then the tds to be deducted on full amount at a prescribed rate.
sunnysmile
(Student CA CPT )
(22 Points)
Replied 16 May 2013
printing china is a good place to know about china and also where you can turn to when encountering some technical printing issues.
alifiya gorach
(article assistant)
(21 Points)
Replied 01 July 2013
dear all,
please tell me if a trust carrying on religious work, places an order for printing holy books whether tds will attract on such payment? further the problem is that such bill amount includes courier charges of rs.740 which makes the total of bill 30740/- will taking also this fact into consideration tds will attract on such bill amount?
CAclubindia
