Daily workers in construction industry

This query is : Resolved 

27 February 2010 Client is enganged in Construction of New Bldg. Daily casual workers are required to perform many routine jobs in construction activity. How to maintain the records for the same....Are they subject to TDS / labour laws.....as per the contractor these workers are on daily bais and difficult to maintain any permanant record for them...pls guide

27 February 2010 As per provisions of TDS is concerned u need to deduct it from payments made to contractors.

Secondly if the contractor is employing the workers on daily basis there is no question of record maintainance by u.

If u are directly employing workers on the site then u should must see provisions Labour laws.

28 February 2010 agree with expert


01 March 2010 Generally Daily workers are not come to taxable limit and TDS may not applicable

02 March 2010 in case u paid to daily worker,no need to deduct TDS in this case, as Daily workers are not come to taxable limit.
if daily worker are paid by contractor and contractor is paid by u, for them, in this case u must deduct TDS as per rule.

03 March 2010 Your query shows that the construction work is performed through contractor.

In this case Contractor is liable to deduct the TDS, labour laws and other statutory obligations.

The construction company may advised to enter into a clause in the agreement with contractor that the "Contractor" will be liable to fulfill all the statutory obligations.

Acoording to the laws and rullings, if any contractor fails to meet statutory obligations, the principle employer's (i.e Construction Co.) is liable.

Regards
K.L.Paliwal



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