Entry for Labour Charges
This query is : Resolved
17 June 2022
Dear All,
We are an LLP Organisation. We do CCTV installation and pay labour charges for the same. The firm installing the CCTV give us an invoice without GST. My question is should I create an account in the name of the person issuing invoice or simple the labour charges paid as expense will do. i.e,
Should I pass the entry as :
Labour Charges Dr. XXX
To Cash/Bank Cr. XXX
Or should I create a ledger in the name of party issuing invoice For ex. If suppose we purchase labour from R C Image Solutions, so the entry will be :
Purchases Dr. XXX
To R C Image Solutions Cr. XXX
And on making payment, the entry would be:
R C Image Solutions Dr. XXX
To Cash/Bank Cr. XXX
Please provide the suggestion.
Thanking in advance.
We are an LLP Organisation. We do CCTV installation and pay labour charges for the same. The firm installing the CCTV give us an invoice without GST. My question is should I create an account in the name of the person issuing invoice or simple the labour charges paid as expense will do. i.e,
Should I pass the entry as :
Labour Charges Dr. XXX
To Cash/Bank Cr. XXX
Or should I create a ledger in the name of party issuing invoice For ex. If suppose we purchase labour from R C Image Solutions, so the entry will be :
Purchases Dr. XXX
To R C Image Solutions Cr. XXX
And on making payment, the entry would be:
R C Image Solutions Dr. XXX
To Cash/Bank Cr. XXX
Please provide the suggestion.
Thanking in advance.
17 June 2022
Pass the entry as :
Labour Charges Dr. XXX
To Cash/Bank Cr. XXX
Labour Charges Dr. XXX
To Cash/Bank Cr. XXX
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17 June 2022
Thanks, but sir how I will comes to know whether the limit has exceeded Rs. 30,000/- for TDS purpose. I will have to maintain separate excel sheet for the same.
18 June 2022
Yearly limit is 1 lac and each payment limit is 30,000. Yes you have to maintain excel sheet.
If you are using tally it will take care.
If you are using tally it will take care.
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18 June 2022
Thank You sir, We are using Busy Accounting Software. Thank you for your answer/reply.
18 June 2022
Sir, how can we differentiate whether labour charges paid comes under section 194C (Payment to contractor) or 194J (Payment for Technical and professional Fees).
Thanks in advance
Thanks in advance
18 June 2022
Section 44AA defined professional for them 194J applicable rest 194c applicable
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18 June 2022
Sir, will labour charges for installation of CCTV will be considered in 194J.
18 June 2022
No, it will be 194c.
18 June 2022
Sir, We have one client located in Bihar, he has a GST No., but does not apply GST on the invoice. He charge us for CCTV Migration, CAT 6 Lan Cable and travelling expenses in one invoice. My question is should we have to bifurcate the same into CCTV migration as Labour charges, CAT 6 cable as Material purchased and Travelling as conveyance or should we considered all three together as Labour Charges. Is it proper on his part to give the invoice without GST, as he has a GST No.
Thanks
Thanks
18 June 2022
Consider all three as service charges.
It's not proper to give invoice without GST once registered under GST.
It's not proper to give invoice without GST once registered under GST.
18 June 2022
Sir, TDS will be deducted under section 194J, is it right. As technical services.
19 June 2022
Material and traveling claim included so only 194c applicable.
20 June 2022
Thank you, sir for your reply.
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