Tds

We are an exporter of granites. We hire a person from outside and engage him to provide labourers and finish our process of granites , up to exports. He has agreed to act as a contractor,and issue a bill on us accordingly. Please let me know, is it possible to raise a bill narrating the work done for us , with details and also is it possible to raise a bill on us, even for providing the labourers to complete the allotted work. or is it ok to collect a combined bill for both the process(i.e. work completed & labourers provided). In that case, which is to adopted, either TDS provision or VAT under work contract or Service Tax? 

v.p.chandra sekar

Replies (2)

You are hiring some contractor who will make the granite exportable, and he will undertake this work by hiring his labours to do the job. Even if he provides only one consolidated bill, TDS will be applicable because the raw material - granite - has been provided by you with certain specification. 

Thanks Mr Mihir. Still i need clarity on Service Tax liability, as the contractor is supplying labourers also, irresptive of  deducting TDS as per 194 C.

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