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

TDS on job work: intra-company charges between separate units raise question of withholding and accounting treatment. Whether one internal unit may invoice another for job work charges and whether the receiving unit must deduct TDS is queried; the reply states that separate financial statements are not required for excise and a trial balance can be provided, without addressing TDS withholding explicitly.