Help for tds entry

Dear Surender, Kindly make clear the contract terms for Medical Expenses to be born by whom i.e., by company or Labour Contractor. Labour Contractor provide services arranging labours/ workers at work site. As per contract if the medical expenses explicitly borned by company contract labour a/c will not come into picture. In such case if paid on behalf of Labour contractor following entries can be accounted :- 1) Medical Expenses a/c dr 5000 to Hospical a/c cr 5000 2) Labour Contractor A.c dr. 4000 to Medical Expenses a/c 4000 in second entry labour contract a/c in your books will be debited and adjusted against any dues payable to lab. contractor.

Shilpa Thanks and reagrds for helpful suggession. we had contatct with hospital for medical expenses.Medical expenses of   contract labour born by the contractor labour provider. But hospital billing to us  such expenses (contract labour medical treatment)  so we have to pay the whole amount and we deduct such  part of amout from the  labour contractor. Now confusion  here arises how much we have to deduct the TDS on the payment to hospital. only for our medical expenses or both contractor + our ?  Rs.1000 for our employee exp and 4000 for contractor exp. total bill amount Rs.5000.

Dear Surender,

If the contract with Hospital is only for medical expenses/services of your company employees then, related expenses /service bill should be raised by Hospital separately for Company and for Contract Labour Provider.

Company can ask Hospital to bill separately. and TDS applicable only on service provided for company employees.

Rest payment made by company on behalf of cntr. lab.to be debited to C.l.provider a/c. for adjusted against his a/c..

Thanx Shilpa