Contract Labour

Dear All,

I have a querry on contract labour. Suppose we have taken a contract of labour. Now if he is producing the bill as follows:

Labour Charges                        RS 100

PF (Employer's Contribution)  Rs 12

Hence Total                                Rs 112

My querry is whether i should deduct TDS on Rs 112 or RS 100 only? And any basis or case law for reference?

Thank you in advance 

Replies (9)

nly on 100

PF is exempt from tds u/s 192

Originally posted by :vidisha
" nly on 100
PF is exempt from tds u/s 192
"


 

Thanks VIDISHA. I think you are saying it about salary TDS. Is it applicable for contract labour also? 

Chetan

Chetan

There is difference between Contracted Labour & contract of labour . In first case you are taken labour on contract basis & ther is contract between company & Labour & in this case Labour charges ie. Rs. 100 is laiable for TDS . In second case contarct of Labour , ther is contract between company & the contarctor who provides labour to company. In this whatevr charged by the conatractor in his bill all the amount are laible for TDS . In second case contractor is liable for PF of labour & this amount also includes in the contracted amount.

Hope u hav no doubts....

oops!!!!!!!!! its 194 c..........again only on 100

Originally posted by :Vidisha
" oops!!!!!!!!! its 194 c..........again only on 100 "


 

But any supporting or reference for only Rs 100

ya its a deduction u/s 80c

i mean pf is a deduction

Originally posted by :Sorabh Gupta
" Chetan
There is difference between Contracted Labour & contract of labour . In first case you are taken labour on contract basis & ther is contract between company & Labour & in this case Labour charges ie. Rs. 100 is laiable for TDS . In second case contarct of Labour , ther is contract between company & the contarctor who provides labour to company. In this whatevr charged by the conatractor in his bill all the amount are laible for TDS . In second case contractor is liable for PF of labour & this amount also includes in the contracted amount.
Hope u hav no doubts....
"


 

Hey friend

In first case where we have contracted labor then whether its company liability to pay PF? And can we differenciate it from normal salary?

Chetan

In first case the laibility for deduction & depositing the PF of labour is on the company as it is just like a normal salary.

The main difference is that salary is for management employee & wages for labour.

Hope you have no doubts........

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