we have our own people and getting work done from them and we will pay amount as labour charges for every 15 days does it attract gst/tds?
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Quick Summary
This discussion explores whether GST and TDS apply to labour charges paid to internal factory personnel who then disburse payments to their team members. Initially, it was suggested that if an employer-employee relationship exists, GST wouldn't apply. However, further clarification indicates that if a lumpsum is paid to an individual who acts as a contractor and distributes the funds, GST and TDS might be applicable based on the contractor's turnover and the work performed, rather than salary payments.
"Our People" Assume by me that there is relationship of Employer & Employee (CTC) , hence in term of Schedule III it's not an supply so No GST attracts.
One more clarification plz... lumpsum amount will be paid to him as labour charges and he will be disbursed to his members in that case does it attracts gst... does it attracts tds too...? tia
To be clear,we pay lumpsum amount to that person and he distributes them he is not hired from outside,he is the factory person he just takes comission from the amount which he distributes to others
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