08 October 2011
The section 194C is applicable only when the contract is either a "work contract" or a "contract for supply of labour for works contract". The expression "work" includes ADVERTISING, broardcasting and telecasting including production of programmes, carriage of goods and passenders by any mode of transport other than by railways, and catering.
Income Tax is to be deducted at source @ 1% if the contractor/sub contractor payee is an individual or HUF. Payment of amounts to persons other than Individual/HUF would attract TDS rate of 2%.
No tds if single transaction does not exceed 30000 OR Aggregate of the year does not exceed 75000
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