This discussion clarifies the applicability of TDS on betterment charges and supervision fees. Betterment charges paid to government authorities are generally not subject to TDS. However, TDS is applicable on supervision charges under Section 194C, typically at a rate of 10%, as it falls under payments to contractors.
14 December 2021
TDS not applicable on betterment charges as it's paid to government authorities. TDS applicable under payment to contractor under section 194C on supervision charge.