Tds
This query is : Resolved
Avishake Garg
(Querist)
12 November 2011
I am a garment manufacturer. From cutting upto sticthing the work is done on job work basis. I want to know do I need to register for TAN no. and cut TDS before making any payment to the labour. If the answer is yes what is rate of TDS.
Hari Wadhwa
(Expert)
13 November 2011
Dear Mr Avishake
TDS need to be deducted only when the salary (wages paid) is taxable in the hands of your employees (labor).
TDS need to be deducted only when the salary (wages paid) is taxable in the hands of your employees (labor).
Kishanlal Paliwal
(Expert)
14 November 2011
TAN number is required to obtained for any assessee liable to deduct the TDS;
In your case, we need to TEST as under;
whether the work performed by labour, or jobworkers?
The work is performed by Jobworkers, if raw material provided by the manufacturer and job work is performed beyond the premises. The rates are fixed on per piece basis. The TDS is required to be deducted if jobwork charges fatched the limit of Rs. 50000 per year.
If the work is performed within the factory premises and workers hired by the manufacturer directly. The same are treated as employee and all relevant rules would be applicable including minimum wages rules. No need to have TAN numbers unless taxable limit under Income Tax Act reached.
Hope, now I could be able to made it clear to some extent.
Regards
K.L.Paliwal
In your case, we need to TEST as under;
whether the work performed by labour, or jobworkers?
The work is performed by Jobworkers, if raw material provided by the manufacturer and job work is performed beyond the premises. The rates are fixed on per piece basis. The TDS is required to be deducted if jobwork charges fatched the limit of Rs. 50000 per year.
If the work is performed within the factory premises and workers hired by the manufacturer directly. The same are treated as employee and all relevant rules would be applicable including minimum wages rules. No need to have TAN numbers unless taxable limit under Income Tax Act reached.
Hope, now I could be able to made it clear to some extent.
Regards
K.L.Paliwal
14 November 2011
Job work limit have been raised way back. Current limit is 30000 per bill and 75000 for a year since july 2010.
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