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Tds deduct compulsory or not

ABHIJIT MANNA (ACCOUNTANT) (447 Points)

08 January 2019

We paid as a daily labour of Rs. 103000.00 in 7 installment to a labour in a Financial Year, but he has no Pan card, What should we do?

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6 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 08 January 2019

tds needs to be made @ 20% under section 194C since the recipient does not possess PAN

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Harshavardhan (student) (138 Points)
Replied 08 January 2019

TDS to be deducted at a higher rate @ 20% if PAN is not available

RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 08 January 2019

@ Abhijit.,

Can You give some details...?!

Daily labour means "Is your employee? or Labour Contractor...?

1 Like

v k s supraja (intermediate) (216 Points)
Replied 08 January 2019

If it is "contract of service" then the employer is liable to deduct TDS u/s 192 if and only if amount paid to employee exceeds the basic exemption limit. otherwise (if it is a "contract for service") it is liable to deduct TDS u/s 194 C as it exceeds aggregate amount of 100000 even paid in installments.

ABHIJIT MANNA (ACCOUNTANT) (447 Points)
Replied 11 January 2019

Labour Contractor Sir, But if we deduct TDS 20% the work will be hamper, so what will we do now? If there are any way to record our books correct without deduct any TDS, they are daily labourer.