11 March 2010
My opinion is that it is an amount and not wages that are paid to the contractor for supply of labour. So it it is termed as contractor's payment and TDS will be subject to 194C.
11 March 2010
Payments to recruitment agencies - Payments to recruitment agencies are in the nature of payments for services rendered and not for carrying out any work including supply of labour for carrying out any work. Hence provisions of section 194C will not apply. The payments will however be subjected to TDS under section 194J. Similar would be the position in respect of payments made by a company to a share registrar—Circular : No. 715, dated 8-8-1995.
CAclubindia
