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

 

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.