Applicability:
Any specified person is responsible for paying any sum to a resident contractor/sub-contractor
For carrying out any work and
If such payment exceeds Rs. 30,000 in a single payment or exceeds Rs. 1,00,000 in aggregate during the financial year
Tax should be deducted by payer @1% – If payee is Individual or HUF (No SC,EC & SHEC)
@2% – If payee is any other person other than Individual or HUF (No SC,EC & SHEC)
At the time of credit of such sum to the account of payee or at the time of payment whichever is earlier.
Exceptions:
The following payments will not attract TDS u/s 194C.
- Payment to transport contractor (Contractor can be Individual, firm, company or any other person), if such TC – furnishes PAN, Owns not more than 10 goods carriages at any time during the previous year and furnishes declaration.
- Payment by an Individual / HUF to resident contractor for personal purposes.
- If such payment does not exceed Rs. 30,000 in a single payment or Rs. 1,00,000 in aggregate during the financial year.
