TDS deduction on contractor's payment

194C IS FOR PAYMENT TO CONTRACTOR &

194 H IS FOR COMMISSION OR BROKERAGE

AND U R MAKING PAYMENT TO CONTRACTOR, AS PER MY OPINION

Yes, It will come under Sec 194C.

194c is payment to contractors or sub-contractors

Question 12 : Whether payment to a recruitment agency can be covered by section 194C ?

Answer : Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work. Payments to recruitment agencies are in the nature of payments for services rendered. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act.

Circular : No. 715, dated 8-8-1995.

Agree with Mr. Maheshwari.