Clarification - Sub-contractors payment

[BHASKER MURALI]

Dear sir, please clarify payment to sub-contractors is nil against submission of PAN No.? we are construction contractors we are using transporters for material shifting one place to another place and also we are paying to TCI like transporters TDS is NIL to this contractors too. please advoice

AI Summary

Sub-contractor payments not exempt from TDS; Section 194C(6) exemption applies only to transporters with PAN. A discussion on a forum addressed a query about whether payments to sub-contractors are exempt from tax deductions upon submission of a Permanent Account Number (PAN). The response clarified that, according to amended Section 194C(6), no tax deduction at source (TDS) is required for transporters who provide their PAN. However, sub-contractors do not qualify for this exemption and are treated as contractors. It was advised to obtain a copy of the PAN card and a declaration from payees. The forum aims to enhance knowledge sharing and clarify doubts by providing basic information on such issues.