Tds

under section 194C for contractor

only 195 section of income tax.

dear senior 

t present no tax needs to be deducted by your client if u have furnished PAN. W.e.f. June 2015, u r required to give declaration (refer above link), in which case no TDS else it is applicable. If not, TDS 1% is deductible as it is a proprietorship concern. In any case, since it is a proprietorship concern, payer needs to deduct 1% tax only (not 2%) even at present. You need to apply same provisions when u pay freight charges. Suppose you are not able to get back the tax already deducted, u can also claim the same while filing IT return.

 

Mr. Hafeez,

TDS is required to be deducted u/s 194C @ 1% if payee is Individual or HUF in other case it is 2%.

Also on or after 01/06/2015

 if payee does not own more than 10 goods carriage at any time during the year and payee furnish declaration for the same and furnishes his permanent account number then no tax is required to be deducted. 

Before  01/06/2015 

Payee only required to furnish Pan to avail this benefit.