Tds on job work

Are you talking about TDS for the purpose of Income Tax or GST??

For the purpose of Income Tax, yes TDS to be deducted under Sec.194C @ 2%.

For the purpose of GST, yes it is a supply. But according to me TDS provision is applicable from 1st October'18 and it is applicable only on the CG, SG, Other Governmental Entity, Any other body which has been set up under the act of parliament or state legislature etc.  

Thank you sir for your reply.

As per Section 194C (3) and refering the explanation (iv) (e) which says about defination of work as follows

In explaination (iv)

(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

As per above TDS should is not applicable because our Comapny has neither sold nor supplied frames to the vendor. But to be called it a work law requires that product should be supplied by the ABC Ltd.

Please clarify sir.

Thank you

Nikhil pokharna

Originally posted by : Nikhil Pokharna
	Thank you sir for your reply. As per Section 194C (3) and refering the explanation (iv) (e) which says about defination of work as follows In explaination (iv) (e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer. As per above TDS should is not applicable because our Comapny has neither sold nor supplied frames to the vendor. But to be called it a work law requires that product should be supplied by the ABC Ltd.   Please clarify sir.   Thank you Nikhil pokharna

Yes, you are right. In that case it would be treated as Contract for Sale, hence no TDS would be applicable.