Unloading charges --- to avoid tds

TDS 434 views 5 replies

We incurred cash expenses in every month as Unloading Charges of Goods at Market Place of Rs.30,000/- per month

This Unloading charges pay to Some Local Peoples who unload the goods. They have no Organisation/Union . Near about 200 persons are involved in loading unloading job

Advice : Please advice us how to Avoid to pay TDS on Unloading Charges .....

It is possible to Change Head of Accounts so that TDS will not applicable ??

Please advice me ... thanks

 

Replies (5)
are these men appointed on contract basis....if yes then tds to be deducted under 194c

No Sir, they are not Organised ... they have no Union ... they are not apponted by any one... they are working as individual ... 

we paid unloading charges to them individual..... kindly note that every day all these people are roated... 

we pay like this >>>> 10 persons unload our goods >>> then we pay Rs. 200/- to each persons >> 10 Nos X Rs. 200/-

As per above procedure , please advice us whereas TDS is applicable ??? If yes...then advice us how to avoid TDS to pay. through change of Head of accounts ( Unloading Charges) ... thanks.... waiting for your advice

as they are not under contract basis no need to deduct tds...but the expenses will be disallowed as the same is being above 10k and paid in cash

Many many thanks Sir.... for your valuable advice .. Now Just need one more advice in this regards for making of  Cash Voucher and Income Tax quaries ----

1) Name of Accounts : Delivery Expenses 

2) Narration ; We incurred cash expenses for Coolie for unload / Unloading charges 

Question 1) : What is correct and authenticate  Narration to avoid TDS  >> 1) Coolie for Unload 2) Unloading charges

Question 2) : If Income Tax arise question for TDS , Then how to prove that these people are Not Under Union / Organisation / Contactor / Not appointed / No Contract basis etc. ??  they are individual 

Thanks Sir,---- I am waiting for your valuable advice  for question no. 1 and No. 2

1. wages for unloading

2. we f they are under Union or organisation the payment will be made to the said Union..if under contractor then to the contractor, if appointed then they are considered as staff members....since they do not fall under any of these therefore no need to worry about the question of tds to arise ...


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