Job work scrap tds

Accounts 280 views 3 replies

Rajesh PB

80 Points Joined June 2017

Greetings ,

Im issuing raw materials for job work , the job worker does the job give me finished material, he reatains his wages as scraps that comes when processing. So I need to make that scraps as sales invoice to him .

In this case I'm not paying as cash to him , need to deduct tds ?

When mix mode scraps sales and cash payment need to deduct tds ?

Replies (3)

Taha

405 Points Joined May 2019

The supply is for consideration other than cash so it is a taxable supply because supply covers sale transfer barter lease exchange and yes u need to make a invoice also the amount of scrap sales by him will be the taxable value of supply but if u have not taken itc on raw materials then no need to pay tax assuming job worker is taxable person as u r not paying cash but still tds is applicable if payment exceeds 30000 per payment or 1lakh in a year in mix mode add sale value +cash for tds and gst