A Company is hiring contract labour through a man-power supply agency at an agreed rate. Because of non-availability of ESI registration for the agency, the Company is deducting ESI on behalf of the agency and remitting it. By this virtue, whether those employee will be deemed to direct contract employees and hence whether TDS deduction is applicable as per 192 or even in such case, considering the contract for supplying man-power, whether TDS is deductible u/s-194C??
Please reply.
CAclubindia
