Tds rates u/s194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 Hello Sir/Madam,

we are making payment to labour workers for construction of building these labours are supplied by a Building contractor.

My Question is that should we deduct TDS from these payment ? and TDS Deduction Rate?
Actually we have deducted 2% TDS.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

17 April 2015 r u paying to building contractor or directly to labour

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

17 April 2015 if u r paying to contractor.. u can deduct tds @ 1 % if individual else 2 %

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 we are paying directly to labour then tds rate

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

17 April 2015 that means u r not having any contract with the contractor ... ???

and for what u r paying the labour and how much the amount is

Rupesh Jain

Rupesh Jain (Expert)

17 April 2015 tds to 1% for individual and 2% for company & firm

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 Firstly Thank for Reply,

This matter is related with construction of new office building.The construction co. act as a supervisor all bills payments Material and Labour are directly paid to respective party by us .

amount is applicable to deduct TDS As per income tax act exceed in aggregate Rs.75000/- but i have just confusion about labour tds rate.

Cheques also given in the name of respective labour not in the name of construction co.

CA Ashok Vardhan

CA Ashok Vardhan (Expert)

18 April 2015 If the amount you are paying exceeds Rs.30000 per transaction else if it is exceeding Rs.75000 per annum (all the payments put together) you need to deduct tax @1% after acquiring his or her PAN No dear

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