TDS applies to contractor, subcontractor payments. Income Tax Act 1961 Section 194C. Learn more on who to deduct TDS from, applicability, rates, timing, returns.
This document covers
Any person responsible for paying any sum to a resident contractor for carrying out any work in pursuance of a contract between the contractor and the specified persons as follows
TDS is not required to be deducted if the payment to a contractor or sub-contractor does not exceed Rs 30,000 in a single payment or Rs 1,00,000 in an aggregate during the financial year
TDS u/s 194C needs to be deducted at the following times which ever is earlier
Refer https://eztax.in/tds-on-payments-to-resident-contractors-and-professionals for the applicability of TDS on payments for personal purpose.
TDS u/s 194C is not required to be deducted on the payments made to contractors during the course of plying, hiring or leasing goods carriages, if the contractor furnishes his PAN to the deductor. However, the person needs to fulfil the following 3 conditions.
The due date for payment of TDS deducted u/s 194C is within 7 days from the end of the month in which deduction is made. However, for the March month, due date is April 30
The contractor or Sub contractor can apply for lower deduction or nil deduction of TDS in Form 13 and submit the certificate to deductor for non-deduction or lower deduction of TDS