TDS on Incentive to Labour Contractor
Vipul Acharya (Account Officer) (647 Points)
22 May 2020Vipul Acharya (Account Officer) (647 Points)
22 May 2020
P-SAC
(Partner)
(152 Points)
Replied 22 May 2020
Dear Sir,
It will step in same shoes of labour contractor. Same section 194C.
Asha Kanta Sharma
(Manager - Finance & Accounts)
(36355 Points)
Replied 22 May 2020
Under Section 194C you have to deduct TDS as mentioned below if you are making a one time payment exceeding Rs. 30,000/- or in aggregate yearly exceeds Rs. 100,000/-
When provisions of section 194C of the Income Tax Act gets attracted, the Deductor is required to deduct TDS at the following rates –
Particulars | Rate of TDS |
Payment made / credited to an individual or HUF | 1% |
Payment made / credited to a person other than an individual or HUF | 2% |
However, in case the PAN is not furnished, the Deductor would be liable to deduct TDS @ 20% i.e. at the maximum marginal rate.
Pradeep Gupta
(Accounts Manager)
(298 Points)
Replied 23 May 2020
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India