Tds on labour supply plus commssion
This query is : Resolved
08 May 2023
For construction work, the contractor who is an individual is supplying labour and billing the charges paid by him as per actual attendance of the labour. On the total amount of labour wages, he charges his profit as commission @ 10% of total wage bill for a particular period. Please advise me as to TDS will be applicable on entire billed amount u/s 194C only or TDS will be u/s 194H on contractor's margin (Commission). Thanks
08 May 2023
You are paying total amount (& not reimbursement of individual labor payments) to the contractor, sec. 194C will apply.
09 May 2023
Thanks for the guidance provided.
The bill is like this:
Period 01.05.2023 to 07.05.2023
Supply of labour for construction work at site
Skilled Labour 3 persons 7 days @ 500 each = Rs.10,500
Mason 3 persons 5 days @ 800 = Rs.12,000
Coolie 10 persons 7 days @ 400 per day = Rs.28,000
TOTAL Rs.50,500
Add commission @ 10% of above Rs. 5,050
Grand Total Rs.55,550
Kindly guide for the above referred bill.
The bill is like this:
Period 01.05.2023 to 07.05.2023
Supply of labour for construction work at site
Skilled Labour 3 persons 7 days @ 500 each = Rs.10,500
Mason 3 persons 5 days @ 800 = Rs.12,000
Coolie 10 persons 7 days @ 400 per day = Rs.28,000
TOTAL Rs.50,500
Add commission @ 10% of above Rs. 5,050
Grand Total Rs.55,550
Kindly guide for the above referred bill.
09 May 2023
If your contract is for supply of labour, go with sec. 194C of the act.
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