Tds deduction on labour charges
This query is : Resolved
aishwaryajagadish
(Querist)
28 June 2012
Dear Sir,
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.
Please clarify.
Thanks & Regards
Chandrika
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.
Please clarify.
Thanks & Regards
Chandrika
CA CS Amit S. Kedia
(Expert)
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%
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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28 June 2012
TDS is applicable.
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