Chetan D. (Management Accountant) (89 Points)
02 September 2009Dear All,
I have a querry on contract labour. Suppose we have taken a contract of labour. Now if he is producing the bill as follows:
Labour Charges RS 100
PF (Employer's Contribution) Rs 12
Hence Total Rs 112
My querry is whether i should deduct TDS on Rs 112 or RS 100 only? And any basis or case law for reference?
Thank you in advance
Vidisha
(PRACTISING CA)
(172 Points)
Replied 02 September 2009
nly on 100
PF is exempt from tds u/s 192
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 02 September 2009
Chetan
There is difference between Contracted Labour & contract of labour . In first case you are taken labour on contract basis & ther is contract between company & Labour & in this case Labour charges ie. Rs. 100 is laiable for TDS . In second case contarct of Labour , ther is contract between company & the contarctor who provides labour to company. In this whatevr charged by the conatractor in his bill all the amount are laible for TDS . In second case contractor is liable for PF of labour & this amount also includes in the contracted amount.
Hope u hav no doubts....
Vidisha
(PRACTISING CA)
(172 Points)
Replied 02 September 2009
oops!!!!!!!!! its 194 c..........again only on 100
Chetan D.
(Management Accountant)
(89 Points)
Replied 02 September 2009
| Originally posted by :Sorabh Gupta | ||
| " | Chetan There is difference between Contracted Labour & contract of labour . In first case you are taken labour on contract basis & ther is contract between company & Labour & in this case Labour charges ie. Rs. 100 is laiable for TDS . In second case contarct of Labour , ther is contract between company & the contarctor who provides labour to company. In this whatevr charged by the conatractor in his bill all the amount are laible for TDS . In second case contractor is liable for PF of labour & this amount also includes in the contracted amount. Hope u hav no doubts.... |
" |
Hey friend
In first case where we have contracted labor then whether its company liability to pay PF? And can we differenciate it from normal salary?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 02 September 2009
Chetan
In first case the laibility for deduction & depositing the PF of labour is on the company as it is just like a normal salary.
The main difference is that salary is for management employee & wages for labour.
Hope you have no doubts........
CAclubindia
