Tax withholding on payments for any work expands to include services and transport, with prescribed withholding rates on pay-outs. Section 194C mandates tax deduction at source from payments for carrying out any work, broadly including services, transport, advertising, broadcasting, telecasting, labour supply, materials incidental to work, and works contracts; applies to written and oral contracts, with withholding at 2% from contractors and 1% by contractors on payments to resident sub-contractors, calculated on payment amount and triggered on credit or payment. Exclusions include contracts in substance for sale of goods, hiring or renting of equipment, certain banking transactions, and amounts treated as salaries; a non-deduction certificate may be obtained where income is not taxable.