Tds on contractors

Arun kapoor (Querist) 03 August 2014 This query is : Resolved
sir i have one ques regarding tds on contractor..supoose we have done some sanitary work in our institution and we have to make payment to that contractor for labour charges of Rs.195000 without deduction of tds.
now if the contractor raise 3 bills in the name of 3 individual labourers of amount

labourer 1.
bill no 1.rs. 29000
bill no.2 rs.29000 and
bill no.3 rs.7000 and so on for 2 more persons of same amount to cover the payment of 195000

is the person who is making the payment still laible to deduct the tds.????????

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ROHIT SHARMA (Expert) 03 August 2014
1. If the payment is deposited by you in the personal bank accounts of such laborers then the liability form deducting T.D.S. can be avoided. You can even give "crossed payees a/c and not transferable" cheques or credit the amount directly in their account.