19 March 2009
I am working in private contractor firm. Here they are paying weekly payments. Our auditor warns us not to make voucher which exceed Rs.20k. And also same name labour should not repeat.
How it is possible to maintain like above, as such for ex. painter labour will exceed around 50k per month. And he continues to next 3 to 4 months. How it is possible to account acc. to TDS limited to Rs.20k.
Please give me suggestion in this area particularly so as to come over from this head ache.
Please ignore if any grammatical mistakes in letter. Thanking you,
It appears that you have engaged labour contractor. In this case TDS is very much applicable, if value of a single contract exceeds Rs. 20K or the cumulative value of the contract exceeds Rs. 50K.
May be you have to frequently resuffle the contractor to be within the exemption limit.
CAclubindia
