This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194C is applicable when a government office pays for repair or renovation work without a formal contract. The consensus is that TDS is indeed applicable in such scenarios, as it is considered a 'deemed contract' due to the work performed and payment made.
30 May 2023
Whether Govt. Office having TAN do the repairing or renovation work in the building and do not have any contract with the person but pays the amount equal to say 3Lacs then TDS under section 194C is to be done or not ? If not then why ? and if yes then Why ? Please give your reply with justification.