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What is TDs under section 194C?
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- What is Section 194C? Section 194C states that any person responsible for paying any sum to the resident contractor for carrying out any work (including the supply of labor), in pursuance of a contract between the contractor and the following
- What is the meaning of work for the purpose of Section 194C? The expression, “work” in this section would include- a. Advertising. b. Broadcasting and telecasting including production of programs for such broadcasting or telecasting.
- What is a Sub-Contractor as per Section 194C? A “sub-contractor” would mean any person: a. Who enters into a contract with the contractor for carrying out, or.
- What is TDS to Sub-Contractor? As per the provisions of Income Tax Act, any person (being a contractor and not being an individual or a Hindu Undivided Family)
Jun 15, 2019 · Section 194C covers the TDS that is deducted from specific payments made to contractors and subcontractors. Hence, a proper and detailed understanding of the section is required to avoid future unseen problems in your business. Let us understand further. Contents. What is Section 194C of the Income Tax Act and its applicability?
Jun 14, 2023 · In-depth guide covering Section 194C of the Income Tax Act, 1961 discuss the concept of Tax Deducted at Source (TDS), applicable when making specific payments to contractors or subcontractors, with comprehensive insight into the conditions, definitions, and tax deduction responsibilities.
- Basic Provisions of Section 194C of The Income Tax Act
- Rate of TDS U/S 194C
- List of Exception i.e., Cases Wherein TDS Not to Be deducted U/S 194C
- Time of Deduction of TDS U/S 194C
- Return Filing Requirements U/S 194C
- Questions
Section 194C of the Income Tax Act states that any person making payment to a resident person, who is carrying out any ‘work’ in terms of the contract between the ‘specified person’ and the resident contractor, is required to deduct TDS. The ‘specified person’ mentioned above means the following – 1. The Central or State Government; 2. The local au...
When provisions of section 194C of the Income Tax Act gets attracted, the Deductor is required to deduct TDS at the following rates – However, in case the PAN is not furnished, the Deductor would be liable to deduct TDS @ 20% i.e. at the maximum marginal rate.
Under the following circumstances, TDS is not required to be deducted – 1. The amount paid or credited to the contractor in a single contract doesn’t exceed INR 30,000. 2. The aggregate amount paid or credited during the financial year doesn’t exceed INR 1,00,000. 3. The amount paid / credited to the account of the contractor engaged in the busines...
If the Deductor is required to deduct TDS as per provisions of section 194C of the Income Tax Act, then, the Deductor is required to deduct TDS within earlier of the following dates – 1. At the time of credit of sum to the account of the Contractor; or 2. At the time of payment in cash or cheque or draft or any other mode.
Every Deductor deducting TDS in terms of section 194C is required to file a quarterly return in Form 26Q within following due dates – Important points – 1. Value to be considered for TDS deduction in the case where work includes manufacturing / supply of product as per the specification of the customer by using the material purchased from the custo...
What is Section 194c?
Section 194c requires any person making payment to person, carrying out any work in accordance with a contract between a specified person and the resident contractor, to deduct TDS at the specified rates.
What is the limit to deduct TDS US 194c?
The Deductor is required to deduct TDS @1% in case the payment is made to individual or HUF and @2% in case of payment done to any other person.
What is TDS exemption limit for contractor and sub-contractor?
TDS exemption limit is INR 30,000 in case of a single contract and INR 1,00,000 in case of aggregate amount during the financial year.
Jan 24, 2023 · Learn about TDS under Section 194C of the Income Tax Act, applicable when making payments in pursuance of a contract. Explore provisions, time of TDS, threshold limits, and rates for individuals and other payments.
At the time of making any payment, TDS is required to be deducted by the person making the payment. The rate of TDS depends on the nature of payment made and in this article; we would be focusing on Section 194C which deals with TDS on Payment to Contractor & Sub-Contractor.
Explore our in-depth guide on Section 194C of the Income Tax Act, covering TDS on payments to contractors and subcontractors. Learn about the applicability, threshold limits, TDS rates, compliance requirements, and more to ensure effective tax planning and avoid penalties.
