TDS on forwarding of a service

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This query is : Resolved

Vipul Kamboj (Querist)

13 July 2022 Hi,
I am a freelance producer. As a producer, I often have to receive services from other freelancers > package them along with my service and then bill my client for the total.
Example:
I am doing the casting for a video production for a client.
I hire actors who are both charging 50,000 each. Therefore, the total is 1,00,000.
I am charging my casting fee as 50,000.
I generate the bill with the following items:
1) Actor fees --- Quantity: 2 --- Cost: 50,000 --- Total amount: 1,00,000
2) Casting fee --- Quantity: 1 --- Cost: 50,000 --- Total amount: 50,000
Total invoice amount: 1,50,000

How much TDS does my client deduct while making my payment to clear this invoice?

Additional info:
- I am not gst registered, therefore will not charge any gst.
- The actors I am hiring are not gst registered, therefore they won't charge me any gst
- The actors will generate an invoice to me and will receive the payment from me (not from my client directly)
- I do not have a TAN and will not be deducting TDS while making the payment to the actors.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2022 1. He will deduct TDS u/s. 194Jb over Rs. 1,50,000/-
2. Any dealer having aggregate supply of services more than 20 lakhs has to register under GST and should pay required tax.
3. If your liability to deduct arises, you need to obtain TAN and deduct TDS as per rules.

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