TDS on repairs

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Prajakta wagle

Prajakta wagle (Querist)
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18 September 2009 Is TDS deductible on Labour charges paid for repairs if ESIC on the same is deducted by the company?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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18 September 2009 TDS is deductiable if the bill amount exceeds rs.20000 or 50000 in a year.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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18 September 2009 Agree

Prajakta wagle

Prajakta wagle (Querist)
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19 September 2009 Well would deduction of ESIC @ 6.5% on labour make your opinion any different?

Prajakta wagle

Prajakta wagle (Querist)
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09 October 2009 Well would deduction of ESIC @ 6.5% on labour make your opinion any different? As the client contends that it would be double paymnt to Government?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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27 July 2025 Here’s the clarification on **TDS on labor charges for repairs when ESIC is also deducted**:

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### 1. **TDS on Labor Charges for Repairs**

* Yes, **TDS is deductible** on payments to contractors (including labor charges) if the payment **exceeds Rs. 30,000 per transaction or Rs. 1,00,000 in a financial year** under **Section 194C**.
* The presence or deduction of ESIC does **not exempt** the payer from deducting TDS.

### 2. **ESIC Deduction**

* ESIC (Employee State Insurance Corporation) deduction at 6.5% is a **statutory social security contribution** payable by the employer on wages paid to employees.
* It is **different** from TDS, which is a tax deduction at source.

### 3. **Is it Double Payment?**

* No, deduction of ESIC and TDS are **two separate obligations**:

* ESIC is a contribution towards employee’s welfare.
* TDS is a tax deducted on payments made.
* Both need to be complied with **independently** as per law.

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### Summary:

Even if ESIC is deducted on labor charges, **TDS deduction under Section 194C is still applicable** if threshold limits are crossed.

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If you want, I can also help you with the exact thresholds and rates for TDS under 194C!

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