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TDS on Printing work

08 September 2010

Dear all,

We order to a firm for designing & printing of our company's brochure. They raised invoice with VAT4% including cost of brochure & printing & raised a separate invoice with Service tax 10.30% for brochure designing. can anybody suggest which invoice attract TDS while making payment >50000 & also define it is comes under purchase or jobwork.

somebody suggest me you should deduct TDS on both bill bcoz it is purchase, TDS applicable on non sellable item. Kindly clear it.

Thanks

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13 Replies

Parth Dewangan (Job) (87 Points)
Replied 08 September 2010

Dear Mr.Sunil,

As the firm has segregated the work between jobwork and purchase, tds to be deducted on jobwork not on purchase. it has raised seperate bills for printing and designing. Tds will be deducted only from the bill of designing if the value exceeds Rs. 30000.

1 Like

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 08 September 2010

AGREED WITH ;PARTH

REGARDS,

MANOJ

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 09 September 2010

yes tds would be deducted on job work only

Mayur Arora (CA Final) (295 Points)
Replied 09 September 2010

Yes. TDS to be deducted if one Jobwork exceeds Rs. 30,000/- or aggregate amount exceeds Rs. 75,000/-.

Saurabh Toshniwal (ca final) (2358 Points)
Replied 09 September 2010

yes tds will be deducted

Rachna (Officer) (202 Points)
Replied 09 September 2010

Agree with Parth

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 09 September 2010

TDS to be deducted, if job work charges not given seperately then tds will be deducted on full amount.. Pl correct me if i am worng.

CA MARUTHI GANDHI (JOB) (60 Points)
Replied 09 September 2010

Yes i agree with Parth.

If the invoice includes VAT then it will amounts to sale of goods so TDS need not be deducted where as in second case they raised a service invoice so we have to deduct TDS by considering it as Consultancy or Professional service. So in my opinion TDS to be deducted @ 10% U/s 194J.

If any disagreement with my argument please let me know.

(Guest)

agree with parth sir

chirag daxini (CA final) (73 Points)
Replied 09 September 2010

agreed with parth

TDS to be deducted on jobwork charges excluding Service tax

Parth Dewangan (Job) (87 Points)
Replied 09 September 2010

Yes mr. Deepak,

You r correct. If both the work has not been segregated then the tds to be deducted on full amount at a prescribed rate.

sunnysmile (Student CA CPT ) (22 Points)
Replied 16 May 2013

printing china is a good place to know about china and also where you can turn to when encountering some technical printing issues.

alifiya gorach (article assistant) (21 Points)
Replied 01 July 2013

dear all,

please tell me if a trust carrying on religious work, places an order for printing holy books whether tds will attract on such payment? further the problem is that such bill amount includes courier charges of rs.740 which makes the total of bill 30740/- will taking also this fact into consideration tds will attract on such bill amount?