TDS on repairs
This query is : Resolved
18 September 2009
Is TDS deductible on Labour charges paid for repairs if ESIC on the same is deducted by the company?
18 September 2009
TDS is deductiable if the bill amount exceeds rs.20000 or 50000 in a year.
18 September 2009
Agree
19 September 2009
Well would deduction of ESIC @ 6.5% on labour make your opinion any different?
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?
27 July 2025
Here’s the clarification on **TDS on labor charges for repairs when ESIC is also deducted**:
---
### 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.
---
### Summary:
Even if ESIC is deducted on labor charges, **TDS deduction under Section 194C is still applicable** if threshold limits are crossed.
---
If you want, I can also help you with the exact thresholds and rates for TDS under 194C!
---
### 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.
---
### Summary:
Even if ESIC is deducted on labor charges, **TDS deduction under Section 194C is still applicable** if threshold limits are crossed.
---
If you want, I can also help you with the exact thresholds and rates for TDS under 194C!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- TDS on property - Form 141 query
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- TDS offline utility
- Due Date Clarity
- ITR-3 File/Error Found
- Taxability of credit in canara bank ET & T section (NRO)
- Difff in ais receipts and gst turnover
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
