Deduction of tds required or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2011 Dear Experts,
A private limited incorporated during the FY 2010-2011 and upto December 2010 they were constructing building and paid labour of Rs.150000/- and not deducted any TDS and they have no TDS no. till date. My query is ;
a) Deduction of TDS is Required or not.
Please solve my problem.

Thanks in advance

Regards

CA Rajeev Bansal

CA Rajeev Bansal (Expert)
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17 September 2011 It is mandatory to deduct the TDS in case of company

CA Divyesh Sodha

CA Divyesh Sodha (Expert)
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17 September 2011 Yes tds is must

Hari Beldona

Hari Beldona (Expert)
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17 September 2011 1.TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-
2.An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns. Addresses of the TIN FC are available at www.incometaxindia.gov.in or http://tin.nsdl.com.
3.The application can be made online through http://tin.nsdl.com.
4.Deduct TDS after allotment of TAN
4.After allotment of TAN deposit TDS with interest on delayed deduction at 1% per month or part of month (part of month is to be treated as full month)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 September 2011 The issue raised may be viewed in a different angle.
1) If the comapy itself engages laboureres and pays directly to each labourer his / her wages then no need to deduct income tax since there is no contract in the absebce of an awarder and contractor.
2) On the other hand ,if the company enteres into a labour contract with a contracor who supplies labourers to the company and in turn the company ,in the capcity of an awarder ,pays money to the contractor whose distibutes the money to the said laboureres, obviously, provisions of section 194C attracts since the said contract being 'supply of labour for carrying out any work' which warrents tax deduction at source.