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TDS Rate in Partnership Firm for jobwork

Meet Parekh (76 Points)

13 September 2019

In a partnership firm How much percentage tax decduct (by firm) for jobwork of employee

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5 Replies

Nitin sharma (jobs) (121 Points)
Replied 13 September 2019

For job work of employee 1%

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Kapadia Pravin (17259 Points)
Replied 13 September 2019

If payment to the job work employee is less than 1 lakh in aggregate during the Financial Year , then TDS @ 1% is not to be deducted under 194C

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 September 2019

( jobwork of employee )

@ Mr Meet Parekh.,

Your query is not cleared. Please elaborate with correct details...
The said Person is Jobwork Contractor or Employee...?

1 Like

Suresh Thiyagarajan (Student) (3986 Points)
Replied 14 September 2019

1. Job worker will be a separate person and employee will be a separate person. If both happen to be the same person then contract need to be verified and seen whether the same will come under the contract of employment or separately as job work.
2. If it does not comes under the contract of employment then TDS @ 1% u/s 194C need to be deducted on the labor portion (if shown separately in the invoice) if the payment for the same exceeds Rs. 1 lakhs during the year.
Please correct me if the above solution has an alternative view.

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CA Arun Tiwari (Partner) (5955 Points)
Replied 22 January 2020

Sec 194C requires to deduct the TDS if the contractual amount on account of Job work exceeds 1 lakh then TDS will be 1 % for an Individual (Employee ).