TDS on Manpower Supply

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Nitin (Querist)
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02 March 2010 pl update reg TDS on Manpower supply agencies.Like in case we have given up the contract for manpower supply to M/s XYZ ,where we are paying him in two parts ,first for reimbursment of Salary /PF/ESI /Bonus & second for their service charge with service tax on that amount .Now TDS had to be deducted on both or only service charges bill with service tax.

Also in case Agency shows ur or give documentary evidence in support of salary/PF /ESI/Bonus has actually being paid to the employee on their roll who are working on our behalf ,will it make any difference as far as TDS is concerned .Further on which sections TDS to be deducted ,means u/s 194c for both or different for both?

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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02 March 2010 on Both. Refer circular no. 715 dt. 8-08-1995. Payment to C& F agents. Same principal applied to your case. Manpower supplier is an indepedenant contractor and pay the salary to the personssupplied by him.

Lekh Sood

Lekh Sood (Expert)
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02 March 2010 On both

Nitin

Nitin (Querist)
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02 March 2010 Also in case Agency shows us or give documentary evidence in support of salary/PF /ESI/Bonus has actually being paid to the employee on their roll who are working on our behalf ,will it make any difference as far as TDS is concerned .Further on which sections TDS to be deducted ,means u/s 194c for both or different for both?

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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02 March 2010 u/s 194C for both