TDS on contractor payments requires specified deductions, certificates, TAN quoting and timely deposits with penalties for noncompliance. Deduction of tax at source under section 194C applies to payments to resident contractors and sub contractors for carrying out any work, including service, transport, labour and works contracts; the payer must deduct tax at source at the prescribed rates at the time of credit or payment, subject to surcharge adjustments. Exemption applies where the contract consideration does not exceed the specified threshold, and an Assessing Officer may issue a certificate on application (Form No. 13C) directing lower or no deduction. Deductors must timely deposit sums, issue Form 16A certificates, quote TAN and file Form 26C annual returns, with penalties and interest for non compliance.
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Provisions expressly mentioned in the judgment/order text.
TDS on contractor payments requires specified deductions, certificates, TAN quoting and timely deposits with penalties for noncompliance.
Deduction of tax at source under section 194C applies to payments to resident contractors and sub contractors for carrying out any work, including service, transport, labour and works contracts; the payer must deduct tax at source at the prescribed rates at the time of credit or payment, subject to surcharge adjustments. Exemption applies where the contract consideration does not exceed the specified threshold, and an Assessing Officer may issue a certificate on application (Form No. 13C) directing lower or no deduction. Deductors must timely deposit sums, issue Form 16A certificates, quote TAN and file Form 26C annual returns, with penalties and interest for non compliance.
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