18th September 2015 From India, Kannur
After going through it I observed that you have worried about pf & esic liability. Moreover tds @1.03 also has been paid.
1) while paying tds under which income head you have deducted and paid. If it is under contract payment but as individual you can convert such amount in any other expenses like furniture repairing or any other nature or write off expenses in part booking expenses in way you made payment.
2)Show maximum all such amount conveyance or transportation or any other entertainment expenses paid for welfare activity.
So that all incidents of pf and esic liability will not arise and prepare all dummy bills for same.
Hope my solutions will work for you.
18th September 2015 From India, Mumbai
You have suggested that since we have deducted TDS for this person, we can not show it as labour charges. Why?
Also is there a separate section for TDS rate for Labour charges? If not , we have no other option but to use section 194C even when the contractor is a single person.
22nd September 2015 From India, Mumbai
I would like to tell you that your first worry is was attracting of PF & ESIC. Being Single Person as contractor PF will not attract. Secondly ESIC shall definitely attract because of labour charges.
For you kind information, wherever labour charges or repairing charges or maintenance charges are involved, it shall definitely attract ESIC and not PF.
Secondly as contractor if you have deducted TDS amount by showing labour charges and any other items etc. In that case you will have to deduct ESIC.
Thirdly deduction of TDS under section 194C is fine but ESIC contribution shall be over and above TDS deduction.
The only instead of labour charges, you have to convert these labour charges in to some other expenses. So that it shall not attract ESIC.
The bill should not be showing labour charges but as labour welfare activity for employee which is safest mode of avoiding ESIC Liability.
23rd September 2015 From India, Mumbai