Dear Sir,
We are manufacturers of Generators, because of capacity constraint we give jobs to our job workers wherein we supply 80% of material , 20% of material is purchased by the job worker & he assembles & raises two invoice on us separately for reimbursement of material (Cost price) plus labour invoice for assembling, please advise whether to deduct
1.TDS on both Material + labour
2.TDS on labour portion only
Thanks & Regards
Ganesh
Asked on 1/10/11, 2:15 am
1 Answer from Attorneys
No TDS is deductible on the material portion.
TDS shall be deducted on the labour portion.
Regards
Jeevesh Mehta
Partner( Customs, Excise , Service Tax and VAT )
Maven Legal LLP
Ph: 09811617186
Answered on 1/10/11, 10:59 pm
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