Tds on material supplier with job work

[Rishideo Kumar]

Hi, Sirs, Please advice me about TDS on jobwork with material. Eg. we are repairing and maintenace from registered supplyer that supplyer is all goods suplied and labour charges are also include in total invoice but vat is also imposted in total invoice. advice me tds on deducted or not, suplier is not indicated material used how many or not specific labour charges only total value and add vat rate 13.5% please reply me ASAP.

[Rama Krishana]

TDS is required to be deducted on works contract at the rate of 2% on the gross amount paid for such job work.

[CAGOPALJI AGRAWAL]

Just to add with Mr. Ramakrishna, if the payment is made to individual or HUF then rate is 1% as the same is not clear from query who is recepient.

Moreover, please also remember section 206AA for non PAN furnishing deductees.

 

AI Summary

TDS Applicability on Job Work Contracts: Deduct 2% or 1% Based on Recipient; Section 206AA for Non-PAN Cases. A user inquired about the applicability of TDS on a job work contract that includes both material supply and labor charges, with VAT imposed on the total invoice. The first respondent clarified that TDS should be deducted at 2% on the gross amount for works contracts. The second respondent added that if the recipient is an individual or HUF, the TDS rate is 1%. Additionally, they reminded the user of Section 206AA, which pertains to non-PAN furnishing by deductees.