TDS on salary


This query is : Resolved 

(Querist)
11 March 2010 wages paid contractor for suplly of labour charged to Salarie & wages,For This payment TDS charged under which section 194c OR 192 ?


Rahul Gupta (Expert)
11 March 2010 My opinion is that it is an amount and not wages that are paid to the contractor for supply of labour. So it it is termed as contractor's payment and TDS will be subject to 194C.

Experts view solicited........

11 March 2010 Payments to recruitment agencies - Payments to recruitment agencies are in the nature of payments for services rendered and not for carrying out any work including supply of labour for carrying out any work. Hence provisions of section 194C will not apply. The payments will however be sub­jected to TDS under section 194J. Similar would be the position in respect of payments made by a company to a share registrar—Circular : No. 715, dated 8-8-1995.

So TDS deductible u/s 194C

11 March 2010 Agree with experts

14 March 2010 agree.sec.194C


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