Jitendra Singh (Article and audit assistant) (54 Points)
02 January 2016
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 02 January 2016
Yes You have to deduct TDS @ 1% in case of Individual / HUF and 2% In Other Person and If They Don't Have PAN Card then deduct @ 20%
Jitendra Singh
(Article and audit assistant)
(54 Points)
Replied 02 January 2016
Thank you sir,
So, it means for the labours who don't have PAN card, we have to deduct TDS @ 20%. And if we take a practical view, we have to make a full payment to labours and now make payment of TDS @ 20% from our own pocket. Is it what you want to say?
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 02 January 2016
yes if you made already payment of labour charges then you have to pay TDS from your own pocket either while computing total income 30% amount paid as labour charges is not allowed as deduction.
you can adjust this payment next time with this labour may be if you done any transaction with him
As per my view, this is not a contract payment....can be related to casual workers....anyway their income is mostly below basic limit...if it is above u might deduct TDS as per section 192..
just a view...wait for exerts to answer or maybe just read any other discussion related to the same topic in CCI
CA Gaurav Ajit Potdar
(Chartered Accountant)
(846 Points)
Replied 03 January 2016
Ya agree with Mehul. but we can also take recourse to sec 197 of the IT act which states that in case the total tax liability at the end., of a person whose tds is being deducted is less then the amount of tds that has been deducted, he may file an application to ITO for lower or NIL deduction of TDS. & if ITO is satisfied he will grant a certificate stating such lower deduction. once such certificate is obtained by the deductee & provided to the Deductor, TDS needs to be deducted as per the certificate.
As the deductees are hamals i assume there income need not exceed the taxable thereshold. hence after obtaining this certificate tds need not be deducted.
Kishan Reddy
(Practicing Chartered Accountant)
(103 Points)
Replied 04 January 2016
Jitendra Singh
(Article and audit assistant)
(54 Points)
Replied 04 January 2016
Sir, many of the hamali labours don't have PAN card. So, how can we obtain a non-deduction certificate from them?
faisal
(Artilcle)
(50 Points)
Replied 05 January 2016
Dear
Make voucher of in the name of different individuals (hamals) below the threshold limit of deduction of T.D.S. u/s 194C.
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 05 January 2016
At faisal he already make the payment then how he make the voucher on different name when he made the payment to only one person
Bharati Sharma
(Accounts Manager)
(26 Points)
Replied 11 January 2016
If this issue is for TDS deduction for making payments to single Individual Hamal(on temporary basis),they are getting paid on daily working basis-if he'd worked for 26 days in a month @ Rs.200/per day. His monthly wages will be Rs.5,000/- & per year Rs.60,000/- will not be taxable. If the he is on permanent basis & more than Rs. 75,000/pa will be laible for TDS @ 1% (20%, if not have PAN No.)
If some Contractor is supplying all the Hamals to the firm then only that contractor wil be taxed, if he comes under TDS criteria(if he cross rs.74,999/ps. & not individual Hamals.
CAclubindia
