Tds on job work

[Dharmender Batra]

We are having unit I and Unit II in two different states, but the company is same. Unit II is getting job work done from unit I. Can Unit I raise job work charges against unit II. if yes, will unit II be liable to deduct TDS from Unit I. (i.e., how the same company will be deducting TDS from itself. If job work charges bill is not raised, how can separate balance sheet be prepared with job work charges as expenses of unit II and revenue of unit I. separate balance sheets are required for submission before excise and sales tax authorities. thanks

[Madhukar N Hiregange]

For excise no separate financial are required. Trial balance can be asked for which can be provided.

AI Summary

Company Explores Feasibility of Raising Job Work Charges Between Units, Clarifies TDS Deduction Implications and Financial Reporting A company operating in two different states, with Unit I performing job work for Unit II, inquires about the feasibility of raising job work charges between the units and the implications for TDS deduction. The issue is how TDS can be deducted when both units belong to the same company. Additionally, the company seeks guidance on preparing separate balance sheets for excise and sales tax authorities. The response clarifies that separate financials are not required for excise purposes, but a trial balance can be provided if requested.