Respected All,
We are manufacturing unit. We sent some goods for job work (powder coating/Painting) to job worker.
We received two bills from job worker (for one contract/work):
Bill 1: For material consumed
Amount Rs 5658
+ VAT @ 5% 283
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Total: 5941.00
Bill 2 For Service Portion
Value of service Rs. 8486
+Service Tax @ 12% (Bill raised in May) 1018
+EC @ 2% Rs.20
+SHEC @ 1% Rs.10
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Total Rs.9534
In our opinion TDS is not required to be deducted as individual contract amount does not exceed Rs.30,000 and in total Rs.75,000 per financial year.
Also, we are of opinion that We have service tax liability on reverse charge basis (50%) .
Kindly, confirm the treatment of TDS and Service Tax.
With Regards,
ROHIT BHASIN
CAclubindia
