I know that, TDS has to be deducted at 2% on payment of labour charges generally. But if labour charges are relating to alteration work for agricultural machineries, is there any provision in Income tax which allows us not to deduct TDS @ 2% on such payments.
28 June 2012
Unless and otherwise any exemption is provided for non deduction, TDS is to be deducted on all kind of payment for works contract. There is no exemption for works contract relating to agricultural machine as it is not exempt income and chargeable to tax. Accordingly, TDS should be deducted @2%
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