Tds on daily wages

Biplab Swain (Querist) 01 June 2015 This query is : Resolved
Sir/Madam,
Sorry if I am repeating a simple question. We are an Association under trade union act in Motion picture industry. In order to ensure equal work to all members and surety of payments, we used to send workers on rotation basis to different production houses in serial industry on daily wage basis, which are paid at the end of the month by the production house to the association(in some cases directly to the workers also) for disbursal.

Hence under the circumstances, is any tds is liable to be deducted by the production. If so, what would be the percentage and under which section. Please also note that the no worker in any case gets more than 5000.00 per month.

Most important, since theses workers are hardly 10th pass, primarily agricultural workers, with part time work in movie industry during lean periods, what can be the best way to help them avoid any TDS as they will definitely find it difficult to file Returns and claim a refund.

A prompt guidance will help us put forth our side of the story to the production houses.

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Anirudh (Expert) 01 June 2015
In the given facts of the query, first you please indicate as to who says TDS is to be effected?

If so, ask that person to specify as to under what provisions TDS is required to be effected.

Biplab Swain (Querist) 01 June 2015
Thank You for your interest. In fact a group of Production houses have approached us claiming that they will deduct 10% TDS on all payments made to any and everybody.

Guest (Expert) 01 June 2015
You may ask that Group of Production houseunder which section of the IT Act they can deduct 10% TDS on payments when annual income of each workwer is not expected to exceed even Rs. 60,000.