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TDS for Income tax exemption zone

This query is : Resolved 
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(Querist)
15 June 2008 Dear All

I am a employe in UTRAKHAND & here there is a income tax exemption for 10 Year. My Problem is :-

1- Will i deduct TDS on Labour jobs bills

A- Labour job bill received from Trader Uttrakhand (Income tax exempted unit)
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
31 March 2012 The exemption is from payment of income tax and not from the provisions of TDS. Moreover, the exemption is available to manufacturing units and not every assessee.

TDS is still required to be deducted.
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