Tds on works contract/job work

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srinivas Ganesh Shet (Querist)
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01 February 2012 namaste all
please clarify whether TDS to be deducted by the contractee,if deductable on full bill or only on service portion.? in case of person doing jobwork or works contract of electricla machinery as per the specification of principal in follownig instances

-1) material given by contractee(principal) pure labour work some consumalbeS used and billed as labour invoice
-2)partial matrial given by contractee and patial precured by contractor (job worker) and billed as sale invoice with VAT AND EXCISE.(by reducing stock tranferred by principal)
-2(a)it is not possible to give break up for material and service value
-2(b) it is possible to give break up for material and service value
thank you all

CA. Hari Kishan

CA. Hari Kishan (Expert)
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02 February 2012 TDS is to be deducted on the gross amount charged in the invoice.

We always suggest that the labour / service bill be separately made and invoice for the goods sold be separately made.

If the breakup of service and goods value is not possible, TDS deductible shall be on the total gross value.

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CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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02 February 2012 (a) TDS under section 194C on full bill value but not including material value, if material cost billed separately or separable i.e. only on labour/service componenet (value). The CASE WHERE BREAK-UP IS POSSIBLE
(b)WCT and TDS in case break-up not possible in between labour/service and material value hence not charged with VAT/Service Tax, BOTH TDS and WCT will apply. THE CASE WHERE BREAK-UP IS NOT POSSIBLE.

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