A Contractor is supplying labourers to a Department. He is receiving payments as per details given below :
1. Wages of unskilled labourer = Rs. 100.00
2. EPF @ 13.61 = Rs. 13.61
3. ESI @ 4.75% = Rs. 4.75
4. Profit @ 10% on (1) above = Rs. 10.00
He submits a bill of total Rs. 128.36 to the department. The contracts comes under 194-C for the purpose of TDS deduction.
Whether the department should deduct TDS on Rs. 128.36 (whole sum)
or
on Rs. 110.00 (sum of labour payment and profit)
or
on Rs. 10.00 (4 above : profit of the contractor) (if he submits two separate bills ; one for labour payment and another for expenses towards EPF and ESI)
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