can any body pls tell that whether TDS be deducted on the Labour Cess deducted by the KDA on the contract payment and whether TDS be deducted on the amount of freight charged on the purchase bill?
RIcha Anand (Practice) (29 Points)
05 May 2017can any body pls tell that whether TDS be deducted on the Labour Cess deducted by the KDA on the contract payment and whether TDS be deducted on the amount of freight charged on the purchase bill?
rama krishnan
(12239 Points)
Replied 06 May 2017
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 06 May 2017
Labour Cess is not to be considered for deducting TDS.
Labour cess is paid on the Gross Value of the Contract and also the service tax shall be levied either on the gross value of the contract net of abatement if any. For levying service tax, the Labour Cess shall not be considered. if service tax is shown separately then TDS under Income Tax shall not deducted on the amount of Service Tax.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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