We are a Contractor for Manpower / Outsourcing work i.e we provide manpower to companies/firms & charge Commission like 10% , 15% or 50 % etc on the total remuneration payable to the employee.
In this regard I want to enquire if there is any T.D.S. Amount to be deducted on the commission reimbursed to me ???
e.g. : Our company has provided Bill for Rs 1,00,000/- as Labour Charges to Company X for the month of July for which we are charging 10% commission. Hence, Rs 10,000 is paid to our company & rest is paid as salary to the staff recruited.
I want to know how much T.D.S.( Rate) will be deducted & on which Amount will it be deductible 1,00,000 or 10,000 ?? and under which Section of the Income Tax Act the said provisions are there.??
CAclubindia
