TDS on Contract

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ramakrishna (Querist)
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08 July 2011 Dear ALl,

Please solve this query,

There is a labour contract with xyz and they will charge us 4000000 amount every month for the labour supply.

In the bill, they are also showing the commission amount which is inlusive in 4000000 amount.

Now the question is
Is TDS should be deducted on 194c- contractors or 194H - commission

please advice

CA Navin Jain

CA Navin Jain (Expert)
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08 July 2011 if agreement is made for labour supply and 10% extra commission on the bill value also mentioned in the agreement then its considered a contract for labour supply, hence TDS shall be deducted under sec 194C on the full invoice value.

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