1. TDS on contractor is covered u/s 194C of the income tax act 1961. Tax (TDS) needs to be deducted for payments made to any contractor
-for carrying out any work or
-for supply of labour in connection with any work.
2. TDS needs to be deducted provided-
a. The single payment to the contractor exceeds Rs.30,000/- or
b. The aggreegate amount of payments made during the year exceeds Rs.75,000/-
This section is applicable to all the persons except the Individuals or HUF to whom tax audit u/s 44AB is not applicable in the preceeding financial year.
4. Rate of Tax:
a. For payments made for advertising contracts, TDS is 1%
b. For payments made to sub contractors TDS is 1%
c. For any other payments, TDS to be made is 2%
Note: TDS needs to be made at the time of payment or credit of the amount to the a/c of payee which ever is earlier.
Posted 3 years ago by Mukesh Jain CA
A great post and really informative. Keep posting such great informations to help others.
Posted 2 years, 10 months ago by CA Pulkit Sharma
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