QUERRY REGARDING TDS

TDS will be deducted under 2 different sections on both payments received:

1. On Rs. 1,00,000 it will be deducted under section 194C as labour contract (If Rs. 1,00,000 are paid by company to you and not to the labour directly)

2. On Rs. 10,000 under section 194H as this is commission received by you.

Do correct me if i am wrong.

Dear shruti,

10% Tds will be deducted on 10000 u/s 194H...

Please rectify me if i m wrong

Originally posted by : Shudhanshu
	TDS will be deducted under 2 different sections on both payments received: 1. On Rs. 1,00,000 it will be deducted under section 194C as labour contract (If Rs. 1,00,000 are paid by company to you and not to the labour directly) 2. On Rs. 10,000 under section 194H as this is commission received by you. Do correct me if i am wrong.

Bingo. but the TDS on 194C will be there whether salary is disbursed by vendor or by the company....

Dear G.K.,

If salary is directly disbursed by the vendor then how can u deduct TDS on Rs. 1,00,000 as vendor will not make any payment for labour charges to the company. TDS will be deduct only when vendor is making payment of labour charges bill to the company

Originally posted by : Shudhanshu
	TDS will be deducted under 2 different sections on both payments received: 1. On Rs. 1,00,000 it will be deducted under section 194C as labour contract (If Rs. 1,00,000 are paid by company to you and not to the labour directly) 2. On Rs. 10,000 under section 194H as this is commission received by you. Do correct me if i am wrong.

Its correct even my firm provides this type of work and we do the same.

I think it is a single contract and TDS under section 194C should be on total amount of 1,10,000/=

Originally posted by : Bimal Thacker
	I think it is a single contract and TDS under section 194C should be on total amount of 1,10,000/=

according to me , tds shall be depend on the bill  how the bill is given to company........

so co.shall deduct tds accordingly.

Dear Shudhanshu

I mean, whoever pays the salary to the employee it is immaterial, 194C will be attracted when the labour supplier raises the bill [vendor in accounting sense:)]

i think tds would be deducted on the entire amount of rs.100000 as per section 194c

 Hi,

The client definitely deducts tax at source, however if the manpower contractor provides a tax certificate stating payment of salary that the rate of such deduction varies upto 0.2% (forgive me on section), this is done after 2/3 months ...infact TDS is on Gross Bill amount which include service tax as well, as provided contract staff is service.

so if the bill goes 

Salary to be paid :   1,00,000

+ Mark up 10%            10,000

Net Bill:                     1, 10,000

+ Service Tax @ 10% 11,000

                                  __________

Gross Bill              1,21,000

TDS @ 10% will be Rs, 12, 100/-

Net amount received is 1,08,900/-

Regards

Sagar

Originally posted by : G.K..
	Dear Shudhanshu   I mean, whoever pays the salary to the employee it is immaterial, 194C will be attracted when the labour supplier raises the bill [vendor in accounting sense:)]

Dear G.K.,

When vendor will pay salary directly to the workers then there will be no payment from vendor to the company. And if there is no payment from vendor to the company on which ground u can applicable TDS u/s 194C.

 Dear Frend:

An amount of Rs.3,000 will be deducted as TDS in the follwoing manner:

1. u/s 194c: Rs.1,00,000 paid by a contractee to a contractor =rs 1,00,000*2%=2,000
2. U/s 194h: On rs 10,000 paid as commission to an Individual=Rs.10,000*10%=1,000

If am incorrect ple. let me know

tds will be deducted on the entire amount including your commision u/s 194c since tds has to be deduted by the client and for your client the entire amount will be booked under labour charges and not commision

Hi,

TDS will depend upon the manner bills are prepared.

If the bills are prepared like: for Rs.110000 as a whole sum amount for the supply of labour then TDS will be deducted @ 2% on the entire amount.

If the bill is prepared segregating the amounts then for Rs. 100000 TDS will be deducted @ 2%  under section 194C and for Rs. 10000, TDS will be deducted @ 10% under section 194H.