applicability of tds

[Guest]

sir,

we are engaging workers for maintainance of sanitation, parks etc on outsourcing basis.does they come under the income tax under section 194C. Is it correct to deduct incometax for the said bills.kindly clarify urs,

chakravarthy s.n.

[CASeetharaman KC]

If the workers are being engaged through a labour contractor for which the payement is being made to the contractor then TDS under 194C would be deductible before payment is made to contractor

AI Summary

TDS under section 194C applies to payments to a labour contractor and must be deducted before payment. Where workers are engaged through a labour contractor and payment is made to that contractor, the payer must deduct TDS under section 194C before making payment to the contractor.