Tds rates u/s194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 Hello Sir/Madam,

we are making payment to labour workers for construction of building these labours are supplied by a Building contractor.

My Question is that should we deduct TDS from these payment ? and TDS Deduction Rate?
Actually we have deducted 2% TDS.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 April 2015 r u paying to building contractor or directly to labour

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 April 2015 if u r paying to contractor.. u can deduct tds @ 1 % if individual else 2 %

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Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 we are paying directly to labour then tds rate

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 April 2015 that means u r not having any contract with the contractor ... ???

and for what u r paying the labour and how much the amount is

Rupesh Jain

Rupesh Jain (Expert)
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17 April 2015 tds to 1% for individual and 2% for company & firm

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 Firstly Thank for Reply,

This matter is related with construction of new office building.The construction co. act as a supervisor all bills payments Material and Labour are directly paid to respective party by us .

amount is applicable to deduct TDS As per income tax act exceed in aggregate Rs.75000/- but i have just confusion about labour tds rate.

Cheques also given in the name of respective labour not in the name of construction co.

CA Ashok Vardhan

CA Ashok Vardhan (Expert)
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18 April 2015 If the amount you are paying exceeds Rs.30000 per transaction else if it is exceeding Rs.75000 per annum (all the payments put together) you need to deduct tax @1% after acquiring his or her PAN No dear