TDS on Job work

IF THE PROPRITOR'S BUSINESS IS LIABLE FOR TAX AUDIT, THEN IT IS ADVISABLE FOR THE PROPRIETOR TO APPLY FOR A TAN NO. EVEN IF HE IS NOT LIABLE FOR ANY TDS DEDUCTION.

IF IN NEXT YEAR IF THERE IS ANY TRANSACTION IN WHICH TDS TO BE DEDUCTED, THEN AT THAT TIME HE WILL HAVE TO APPLY FOR A TAN NO. AND THEN PAY TDS THROUGH THAT TAN NO. AND THNE FILE A TDS RETURN.

REGARDS,

DEVENDRA

Thanks Devendra, but taking TAN No. is not an issue, my question is whether the assessee should dedcut TDS on payments made to Job workers?

Rgds,

TDS ON PAYMET WOWARDS LABOUR CHARGES COMES U/S 194C.

HERE, THE THRESHOLD LIMIT FOR TDS DEDUCTION IS AS FOLLOWS:-

SINGLE BILL -30000

AGGREGATE BILL -75000.

RATE OF TDS IS AS FOLLOWS :-

IF DEDUCTEE IS INDIVIDUAL / HUF, THEN TDS @ 1%.

IF DEDUCTEE IS CO. / FIRM, THEN TDS @ 2%.

IF DEDUCTEE HAS NO PAN, THEN TDS @ 20%

THEREFORE IN YOUR CASE, THERE IS A NEED TO DEDUCT TDS, IF THE PAYMENTS ARE ABOVE THE SPECIFIED LIMITS.

REGARDS,

DEVENDRA K

Thanks friend!

According to me, since the assessee is receiving job work from his clients tds will be deducted by assessee`s clients  while payment to the assessee. Where as the relation that exists between the assessee and job workers is that of employer and employee in which tds will be deducted by the assessee as tds on salary.

TDS need to deducted if liable,on a taxable value + 5% gst in case of job work.