The Job worker has raised bill for both material cost & labour charges under one bill. pl. clarify whether TDS has to be deducted only on labour cost or including material cost, since 194 C says any sum paid.
Also clarify what is the TDS to be deducted in case of payment made for attending seminars ?
If the Bill mentions the amount of Labour and Material Costs saperately, then you can deduct TDS only on the Labour charges. But if bill amount does not have any bifurcation between the two, then you will have to deduct TDS on full amount. Your second question is not clear to me. Is it payment to your employees for attending seminars, or some fees for organising the seminars? Pls be more clear.
What is the TDS for seminar fees paid for employees
There is no TDS on any such fees paid in specific section. If it is given as a allowance, then not taxable to employees. And if it is given as fixed amount as a perquisite, then it shall be a part of Salary and TDS shall be deductible on salary according to section 192 which governs TDS on Salary.
TDS TO BE DEDUCTED ON WHOLE AMOUNT IF THE BIFURCATION IS NOT THERE OTHERWISE ONLY ON LABOUR CHARGES.
IN SECOND QUESTION IF THERE IS PAYMENT TO EMPLOYEES THEN NO TDS SPECIFICALLY ON IT.IT WILL BE TREATED AS A PART OF SALARY STRUCTURE AND TDS TO BE DEDUCTED ACCORDINGLY AS PER SECTION 192.
IF IT IS PAYMENT MADE TO ORGANISE THE SEMINAR TO ANY THIRD PARTY THEN TDS TO BE DEDUCTED U/S 194C.
REGARDS,
RITESH KOTHARI
CAclubindia
