MANPOWER PROVIDING AGENCY. IS CHARGING TWO SEPARATE BILLS FROM A CO. ONE FOR LABOUR SALARY INCLUSIVE OF PF & ESI AND ANOTHER FOR HANDLING SERVICES. THE CO. IS DEDUCTING TDS ( AS CONTRACTOR) ONLY ON HANDLING SERVICES AND NOT ON SALARY BILLS AS THEY THINK THAT IT IS ONLY REIMBURSEMENT.
PLEASE SUGGEST ME WHETHER TDS SHOULD BE DEDUCTED ON BOTH THE BILLS OR ONLY ON HANDLING CHARGES ?
TDS should be deducted on both the bills. As supply of man power is labour contract on which sec 194C applies.
| Originally posted by : CMA. Sanjay Gupta | ||
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TDS should be deducted on both the bills. As supply of man power is labour contract on which sec 194C applies. |
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i also agree
THANX FOR REPLYING
DO U HAVE ANY CASE SUPPORTING THIS ? AS THIS PROCEDURE (i.e. deducting TDS on only bill of handling service) IS DONE BY ONE OF THE BIG 4 FIRM.
refer Sec 194 C . All the companies are following it , if they do not then the amount paid will be disallowed u/s 40
YEs can you please provide any case law in supporting of your arguement
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