Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

How to document truck loading/unloading labour charges?

Samrat Pahwa (Others) (29 Points)

20 May 2014

Dear Forum Members,

I'm having troubles in maintaining the Labour Loading/Unloading Charges payments made.

Problem Summary:
As of now, weekly summary of the trucks loaded is made and the payments are made in cash to the labourers.
The problem is that they do not issue any bill for their provided services. Thus all payments do not reach the accounting books, even though their monthly payments are roughly Rs.50k+ for any month.

My Questions:
1. How do create weekly/monthly vouchers for labour charges paid to the labourers, and should they be made in the name of my firm?
2. I'm I liable to pay any taxes on the loading services payments made on this cost head?

Thanks in advance

Samrat

Reply
Follow
Share

8 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 20 May 2014

what kind of loading/unloading costs you 50k+ in a month?

Upgrade to CAclubindia Pro. Subscribe Now!

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 20 May 2014

well you cant expect labours to maintain any books, so issue of invoice is not possible. now to answer your query... of u make payment on weekly basis, get your vouchers either signed by labours or their left thumb impression over a revenue stamp affixed on the payment voucher. bit remember that u dont pay any labour in excess of 20000 in a day otherwise such payment will be disallowed. and you are not liable to pay any tax on labour charges paid.

Samrat Pahwa (Others) (29 Points)
Replied 20 May 2014

Thanks for your input. Being a third party logistics firm, diesel and labour are my variable cost. So, more the truck loads I plan per month, higher is the diesel and loading cost for me

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 21 May 2014

u r welcome my friend.

Pradip Parida (Manager Corporate Controlling and Accounting) (139 Points)
Replied 01 June 2014

Hello Trivuban ,

As per my knoledge, Revenue stamp Act is abolished. Hence affixing revenue stamp wouldn't arise.

Upgrade to CAclubindia Pro. Subscribe Now!

chandra sekar (Manager-Accounts) (387 Points)
Replied 14 June 2014

please confirm whether these labourers are in your on roll account. If not, these labourers will be treated as job workers, where you have to deduct TDS under 194 C and pay to IT. Accordingly you have to collect a bill, becz the total amount comes more than 50,000/- and PA , it comes abt 12 lacs. Also, non deduction of TDS will create a situation of Disallowance of expenses, while scrutinising your accounts.

chandra sekar (Manager-Accounts) (387 Points)
Replied 14 June 2014

please confirm whether these labourers are in your on roll account. If not, these labourers will be treated as job workers, where you have to deduct TDS under 194 C and pay to IT. Accordingly you have to collect a bill, becz the total amount comes more than 50,000/- and PA , it comes abt 6 lacs. Also, non deduction of TDS will create a situation of Disallowance of expenses, while scrutinising your accounts.