if a manufacturing company appoints labours provided by a contractor for its manufacturing and pays monthly salary to the labours, then how TDS is to be deducted ?
i.e., whether from the salary, or from the amount company is paying to the contractor.
6 Replies
CA Abhishek Goyal
(Chartered Accountant)
(516 Points)
Replied 10 November 2017
If contractor is issuing bill to company then TDS needs to be deducted accordingly u/s 194C. If company is paying salary then you have to see the limits of each labourer wise.
CA Abhishek Goyal
(Chartered Accountant)
(516 Points)
Replied 11 November 2017
If you are paying salary then accordingly 192B has to see. And if you r making payment to contractor only then only 194C will come into picture.
chamarthi venkatesh
(Student CA Articleship)
(848 Points)
Replied 11 November 2017
salary is around 20,000 per month for each labourer
CA Abhishek Goyal
(Chartered Accountant)
(516 Points)
Replied 11 November 2017
then no need to deduct. as it is less than basic exemption limit. bt in case of contractor you have to see the limit accodingly.
Umesh V Naig
(Statutory Analyst)
(452 Points)
Replied 11 November 2017
providing labour means , sub contracting raising services invoice on you then 194c appliesif company pays directly to the individual labour if exceeds salary income limits then 192 B applies but the contractor supplies labour amounting to management recruitment services it amounts to professional services then 194J professional applicable ofcourse GST added
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