But yes if the payment is directly made to labours then 194C will not be applicable then only Section 194H will apply On Rs. 10000 and TDS will be deducted @ 10%.

sudhansh is right......................

Yes ,tds applicable for both commission & labour cahrges

tds would be deducted on the entire amount of rs.110000 if the entire amount is paid to the company..i feel 194h is not attracted as payment is in the form of certain percentage and such payment will fall under 'any other mode'mentioned in sec 194c

 In this case, salary is provided to the staff directly by the vendor company. Hence there is no direct payment involved to the company other than commission. Hence, TDS is deductible only on commission amount paid by the vendor company u/s 194H @ 10%

I think the following treatment should be done by the company

if payment is made Rs. 100000/- directly to labour then nothing

if payment is made to the labour supplier then sec 194C attracts and deduct tds on rs. 100000/-

and TDS u/s 194 H shall be deducted on commission amount i.e. rs. 10000/-

Originally posted by : Divya
	In this case, salary is provided to the staff directly by the vendor company. Hence there is no direct payment involved to the company other than commission. Hence, TDS is deductible only on commission amount paid by the vendor company u/s 194H @ 10%

i totally agree with Divya !

at the end the solution is that it depends upon the nature of bill raised by company.  if it is raised with both the salaried amount and commission then both 194 C and H will be attracted and if its only raised with commission amount then it will attract only section 194 H

Originally posted by : Divya
	In this case, salary is provided to the staff directly by the vendor company. Hence there is no direct payment involved to the company other than commission. Hence, TDS is deductible only on commission amount paid by the vendor company u/s 194H @ 10%

i totally agree with Divya !

at the end the solution is that it depends upon the nature of bill raised by company.  if it is raised with both the salaried amount and commission then both 194 C and H will be attracted and if its only raised with commission amount then it will attract only section 194 H

There are 2 ways to issue the bill:

1.    One single bill of Rs. 1,10,000 but this is not possible as how can u raise commission bill with contract bill. But If this exsists TDS u/s 194C on 1,10,000 will be levied.

2.   Seprate bill for contract of Rs. 1,00,000 and Rs. 10,000 for commission then if vendor is making payment of Rs. 1,00,000 to the company, TDS u/s 194C will be apply and on Rs. 10,000 u/s 194H will be levied.

Originally posted by : Shudhanshu
	There are 2 ways to issue the bill: 1.    One single bill of Rs. 1,10,000 but this is not possible as how can u raise commission bill with contract bill. But If this exsists TDS u/s 194C on 1,10,000 will be levied. 2.   Seprate bill for contract of Rs. 1,00,000 and Rs. 10,000 for commission then if vendor is making payment of Rs. 1,00,000 to the company, TDS u/s 194C will be apply and on Rs. 10,000 u/s 194H will be levied.

Dear Shudhanshu !

i agreed with u dear ! 

but i have made the solution earlier that it depends upon the nature of bill ! thats it !

Originally posted by : shruti
	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.??

Dear Shruti !

i think u r very much clear nw about ur query ! 

m i ryt ?