Labour is nothing but contract job.  Calculate TDS @ 2.266% 
on the total job work in case of labour work.  In case of 
sub-labour or sub contractor, TDS rate applicable is 1.133%

there are certain limits for deducting tds for individuals, 
firms, companies, co-operative societies etc.

1)When you make a single payment of Rs. 20,000/- or
2) Total bill exceeds Rs. 50,000/- in the financial year

2.266% for contractors & 1.133% for sub-contractors is the 
maximum limit of tds you can deduct.
other wise there is 2.060 & 1.030% is also there

labour is contractual job for tds . for calculating you
calculate TDS 2% of amount paid + 2% of deducted amount of
tds for cess + 1% of deducted amount of tds for edu. cess
 i.e 2.06% of whole amount for deduction.

And for sub labour :-
calculate TDS 1% of amount paid + 2% of deducted amount of
tds for cess + 1% of deducted amount of tds for edu. cess
i.e 1.03% of whole amount for deduction.