Tds rate?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2012 Kindly help on how much tds rate % deducted on civil work for bunglow........?? providing labourwork, material...

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 kindly help?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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28 July 2025 For TDS on civil works related to a bungalow (construction work), here are the key points:

### Relevant Section:

* **Section 194C**: TDS on payments to contractors/sub-contractors for carrying out work (including supply of labor).

### TDS Rate:

* **1%** if the **payee is an individual or Hindu Undivided Family (HUF)**
* **2%** if the **payee is any other person (e.g., company, firm, LLP, etc.)**

### Applicability:

* Deduct TDS if the payment to the contractor exceeds **₹30,000** per transaction or **₹1,00,000** in aggregate during the financial year.

### Does material supply attract TDS?

* **Material supply alone** is generally not covered under Section 194C.
* If the contract includes **both labor and material**, TDS is deducted on the **whole amount** (including materials).

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**Summary:**

| Payee Type | TDS Rate on Civil Work (Section 194C) |
| ---------------------------- | ------------------------------------- |
| Individual / HUF | 1% |
| Others (Company, Firm, etc.) | 2% |

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