TDS liability

[Pradeep Jain]

Dear Sir,

Our Cusotmers want to supply some components  on payment basis say Rs.50/- and our  Sales Price  including  the said materials is Rs.200/-

Now query is that :-

 Will TDS decut by our customer on the total amount i,e Rs. 200/- paid by him.

Regards

 

Pradeep Jain

 

[AKTA KUMBHANI]

TDS is not applicable on sale of Material. 

 

SO there is no question of TDS deduction

 

[Pradeep Jain]

With rererence to above quary and repy, wish to add that  we have been Manufacturing or supplying a product according to the requirement or specification of  our customer by using the material purchased from such customer..

Then what would be TDS liability on behalf of customer. Will he deduct from the payment made by him.

Please reply.

Regards

 

Pradeep Jain

 

 

[AKTA KUMBHANI]

if you make entry of the component received from your suppiler just like the sales then whatever you return to your suppilers its your sales then no question of TDS. but if you make entry only for labour then suppilers liable to deduct TDS only on the labour value not the total value. 

AI Summary

TDS on supply of materials: deduction applies only to service or labour component, not material value.
TDS does not apply to the sale or return of materials; when components supplied by a customer are returned as goods, no withholding is due on the goods element. If the supplier invoices solely for processing or labour performed on customer provided materials, the payer should deduct TDS only on the labour/service component, not on the material value.