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

[Asked by 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 ..

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.