TDS on Manpower Contract
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 July 2010
We have one manpower agency who is suppling manpower to us. But we had a contract with the vendor.
We used to deduct the TDS @ 194J. But the vendor is telling that we had a contract with the vendor so we should deduct TDS @194C.
Kindly suggest in which section the TDS will come ?
We used to deduct the TDS @ 194J. But the vendor is telling that we had a contract with the vendor so we should deduct TDS @194C.
Kindly suggest in which section the TDS will come ?
31 July 2010
In my opinion, its a technical service & TDS should be deducted u/s 194 J
CA. Pradeep Nayak
(Expert)
31 July 2010
Supply of manpower under a contract will attract TDS u/s 194C.
However, if any consultancy fee is paid to a recruitment agency, it will attract TDS u/s 194J.
However, if any consultancy fee is paid to a recruitment agency, it will attract TDS u/s 194J.
31 July 2010
I agree, if its a simple labour contract : 194C will apply.
But as per the terms manpower agency, in general, specifies a technical service like calling candidates, evaluating them vis-a-vis client's requirement & after shortlisting them, arrange the final selection procedure with the client. These services will of course fall under 194 J.
But as per the terms manpower agency, in general, specifies a technical service like calling candidates, evaluating them vis-a-vis client's requirement & after shortlisting them, arrange the final selection procedure with the client. These services will of course fall under 194 J.
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