X Company has provided Materials (Mat A) to a Job worker. Job worker will add some Materials (Mat B) along with (Mat A) supplied by X and do the processing as per specification of X company ?
Query : Will TDS u.s 194C is applicable ? (since I know the same is applicable if Job worker carried out the work with Material supplied by Principal but in this case 2 things happening, material is supplied by Principal + Material is also supplied by Job worker.
Query 2: whether Excise duty is chargeable and how ?
Query 3 : What is the rate of WCT is chargeable if final output is Acid slurry ? Now Can the principal take the credit of WCT in West Bengal ?
TDS applicability for contract payments where both principal and job worker supply materials, and excise and WCT consequences considered. Applicability of TDS under contract payment rules is questioned where a principal supplies Material A to a job worker who supplements it with Material B and performs processing under the principal's specification; the core issue is whether payments to the job worker constitute contract receipts subject to withholding when both parties supply inputs. Separate questions concern whether excise duty is chargeable on the output given mixed inputs, and the applicable Works Contract Tax rate for acid slurry and creditability of WCT to the principal in West Bengal. (AI Summary)
AI Drafter 
TaxTMI 
TaxTMI 
