Rate of tds

This query is : Resolved

Narendra (Querist)
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06 June 2016 Sir,

We are contractors and we have further given the work to another sub contractor. The sub contractor has raised a service bill i.e for installation etc.

Sir Pls guide me the rate of TDS, as we have to deduct on contract or service.

CA Rohit Jain

CA Rohit Jain (Expert)
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06 June 2016 is sub contractor individual or huf??? If sub contractor is individual or huf, then the rate of TDS is 1%. In any other case rate is 2%. TDS to be deducted only when single payment to a subcontractor exceeds 30000 or total payments made to him exceeds 75000 in a financial year

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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20 July 2025 Section 194C applies on payment to contractors or subcontractors.
TDS rate:
1% if the payee (subcontractor) has a PAN.
20% if the payee does not have a PAN (higher TDS rate).

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