TDS on Contractor Payments: Section 194C
What is Section 194C?#
TDS on payments to contractors.
Applicability#
- Payment to contractors
- Sub-contractors
- Carriage contractors
TDS Rates#
- 1% for individual/HUF
- 2% for others
- 20% if PAN not provided
Threshold#
- Single payment: ₹30,000
- Aggregate in FY: ₹1 lakh
TDS Certificate#
- Form 16A
- Due within 15 days of TDS
Conclusion#
Contractor payments require TDS compliance.