TDS on Service charges.

This query is : Resolved

Dhaval Sata (Querist)
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27 August 2007 If some of the employees(say 30 nos)are not on the muster but they are paid as Service charges.So in that case PF & ESIC is not deducted,and so Sec 194C of the imcome tax,regrding TDS deduction is attracted or not?.

Also if some of the directors are given remuneration but Service Chrages is also given as a part of their remuneration structure,and also it is showm under different head(Service charges).So even in that case Sec 194C would attract?

Please resolve my querry urgently.

Thank you.

Raj

Raj (Expert)
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27 August 2007 At first you check whether PF deduction apply for contract employee also too, some changes happened in this regard . also AS 18 compliance . TDS will be applicable definitely but under which section 194C or 194J decide accordingly.