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 on taxable value: include CST charged by job worker where service tax exclusion is inapplicable. Whether TDS must be calculated on the invoice amount inclusive of CST charged by a job worker who adds material to supplied goods. The administration has clarified that TDS excludes service tax but has not addressed other taxes such as CST; accordingly an expert view is that TDS should be computed on the basic amount including CST.