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 on works contract applies to gross payments for job work; lower rate for individuals/HUF and PAN rules apply. TDS on job work where materials are supplied is to be deducted on the gross amount payable for the works contract; material and labour need not be separately stated. A lower prescribed rate applies to individual and HUF recipients, with PAN-related compliance affecting withholding where PAN is not furnished.