IS TDS APPLICABLE IF JOB WORKER CHARGES CST ON BILL OF ADDITION OF MATERIAL IN JOB WORK METERIAL

[Guest]

DEAR EXPERTS

We are manufuture of electrical switch & we are giving some material for job work person & out side job worker add some qty of material in job work material & send back to us.

and as per condition of purchase order we will issue c form to job worker on value.

job worker charge cst on bill like :- 100 * 75 % * 2% = 1.5 rs cst.

so please guide me will i deduct from next tranaction & give me which value i will take for tds decution. incuding cst or before cst ..

[Guest]

Dear All experts

I am still waiting of your still. so please resolve the above mentioned issue

[Ganeshan Kalyani]

CBDT clarified by Notification that TDS shall be deducted on amount excluding service tax amount but it has not clarified so far about any other taxes levied on basic amount and hence I am of the view that TDS shall be deducted on basic amount including CST.

AI Summary

TDS Applicability: Deduct on Basic Amount Including CST for Job Work Involving Material Addition by Job Worker. A manufacturer of electrical switches inquired about the applicability of Tax Deducted at Source (TDS) when a job worker adds material to the job work and charges Central Sales Tax (CST) on the bill. The manufacturer issues a C form to the job worker based on the value, and the CST is calculated accordingly. An expert responded that while the Central Board of Direct Taxes (CBDT) has clarified TDS deductions excluding service tax, it has not specified for other taxes like CST. Therefore, TDS should be deducted on the basic amount including CST.