Tds
This query is : Resolved
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.
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).
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Putting a heading on received mail
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Experts need help
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
