TDS on Labour Supply

In Case of Construction Company, from the point of view of contractor: what should be the rate of TDS on Labour Supply? I have seen deduction @ 1% treated as sub-contract while I am on audit but in my opinion it will be deducted @ 2% as it differs from sub-contract as we can use the labour according to our will? However 2% TDS is justified if labour contract is in the nature of a specific assignment such as construction of a specified wall. Please suggest the suitable answer of my question.
Replies (5)

Hai Vineet,

A sub contractor is a person who carries on the work of a contractor including supply of labour. So its not the specific assignment that should be taken into account for the purpose of TDS.

So tds is deducted @ 1% for Sub contractors.

i m hvng sum prob. in nderstng ur Q. i mean to whom u r saying a contractor -- 1 ) Company - 2 ) Contractor-->> 3 ) subcontractor.

Originally posted by :Thomas
" Hai Vineet,
A sub contractor is a person who carries on the work of a contractor including supply of labour. So its not the specific assignment that should be taken into account for the purpose of TDS.
So tds is deducted @ 1% for Sub contractors.
"

Thank for the reply. But my Question is different. My orgument is that whether the labour supply in that case was in the nature of sub-contractor or contractoror. Labour supply must be in the nature of sub-contractor but only when it takes place for the purpose of completing the main contract. If we take the labour supply which can be used as per our will then the case may be different. What do u think? tell me.

What is the percentage of emplyer contribution in p.f?

and please refer what is the difference rate of employee contribution and

employer contribution?

 witch rate of TDS  applicable on service privider for clearing agent  

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