TDS for sub contractors

This discussion clarifies the Tax Deducted at Source (TDS) rates applicable to payments made to subcontractors. Generally, 1% TDS applies to payments to individuals and 2% to companies. Importantly, TDS is not required if a single payment is under £30,000. However, if the total payments to a subcontractor exceed £75,000 in a financial year, TDS deduction becomes mandatory under Section 194C.