This discussion addresses whether Tax Deducted at Source (TDS) needs to be applied to cash payments made to labour contractors. The consensus is that TDS is applicable to the entire invoice value, regardless of whether the payment is made by cheque or cash. Therefore, TDS should be deducted on the full amount of the invoice, including the portion paid in cash.
25 February 2020
Dear Sir, we are received a labour contractor invoice of 1,85,000 and i paid 1,55,000 by cheque (TDS Deducted ) and rest 30,000 in cash ( 5000 * 6 in diff. dates ) . so should i deduct tds on cash payment (30000) or not. please suggest me.