Tds on design & manufacture of product
Niraj Mistry
(Querist) 30 August 2012
This query is : Resolved
Hello,
I recently start business on my name design & manufacture of product as per customer requirement. I recently design & manufacture advertising billboard as per concept giving by agency. Now agency accountant says me he have to deduct TDS on my payment. I search many website they says "No TDS on job work". Agency did not provide me any raw material, I have to find raw material from market which is suitable to design & manufacture. If TDS is deduct how much percentage it will be. Please guide me for my query.
Niraj Mistry
(Querist) 02 September 2012
Can someone help me please ?
Anirudh
(Expert) 02 September 2012
First state clearly as to what is your exact business.
Then state as to what was ordered on you by your customer.
Niraj Mistry
(Querist) 02 September 2012
I have just started business of product design & manufacturing. One advertising company show me one of the international company's advertising billboard frame which is attached to bicycle n user can carry in bag. Agency show me only that website n tell me they want same billboard as shows in website. I study that website n their billboard design, then I make my design not same as. I approved sample n then they told me make 10 pcs. I insist 50% advance n 50% after delivery. I got 50% advance and start manufacturing outside workshop, because I don't have workshop. I buy material from market and done labour work outside. Now they told me they deduct TDS from rest of payment. My question is I design & manufacture billboard frame, Can they deduct TDS from my payment ?
M V Gupta
(Expert) 02 October 2012
Section 194C of the IT Act requires the person paying to a contractor for any work done by him to deduct tax at source at the time of paying the amount to the contractor. Hence the Company paying the amounts to you under the work contract given to u is bound to deduct tax at source. Pl give ur PAN number to the Company so that they would credit the amount deducted by them to ur PAN account. While filing ur return u can take this amount into account.
