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Tds on contract labour

This query is : Resolved 

29 June 2012 there are contract labour work in our organazation.we have deduct PF,ESI&PT as applicable,and also deduct TDS@1%or2%
on contract basis
payment to contractor fall under the salaries&wages

whether it is correct or not

30 June 2012 If are making payment to contractor as contractor fees then it will be correct
& esi must be paid through contractor or bulk filing by contractor
otherwise it treated as salary
and one more thing how u r deducting 2% on Contract for Individual



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