Tds act 194c lower deduction

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Magesh (Querist)

08 December 2012 Water treatment plant (government project) construction work is goin on bangalore and civil work we have gave the sub contractor to do the civil work, now the sub contracor has requested to deduct the TDS lower % of tds @ rate of .01% this is applicable from 29th oct’12 onwards under the TDS act 194C

My question is,

1.Whether it is applicable or not applicable,
If applicable means please provide the TDS section with deduct of lower tds

Any one please help me.

@VaibhavJ

@VaibhavJ (Expert)

08 December 2012 Yes,

Lower TDS cert u/s 197 can be availed from TDS section of IT department.

Thanks//Vaibhav
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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

08 December 2012 If the sub-contractor is an individual or HUF then TDS is required to be deducted @ 1%, otherwise @ 2%.

Section 194C is very clear in this regard.

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