10 August 2008
TDS to be deducted under sec 194C If cotractor is under any contract lincence then no service tax to be liable if he is supplying only labour and there is no cantrct then service tax to liable.
Please elaborate me what kind of licence to be verified from such contractor.
Also, if such contractor's bill is like- Basic= Rs. 81/-*26 days= 2106= (a)Basic(Rs. 81/-x26 days p.month) 421 = (b)HRA(20% of a) 270 = (c)Others(12.8% of a) 150 = (d)Washing Allowance(Fixed p.m) 263 = (e)PF(12.5% of a) 140 = (f)ESIC(4.75% of a) 150 = (g)Uniform Charges(fixed p.m) 3500= (h)Total 280 = (i)Services Charges(8% of h) 3780= (j)Total(H+I) 467 = (k)Service-tax(12.36% of J) ..... 4247= (l)Total bill --> Is Service tax amount charged to the company is valid i.e. Rs.467 is payable??
--> Is Tds to be deducted on the same by the company and at what rate?? if yes, than on gross bill including service-tax or excluding service-tax??
--> Also, if my company is not the employer of the employees employed through the contractor, does the payments of employer contribution towards PF and ESIC to be bourne by the company?? But, the same was agreed on the contract.
CAclubindia
