Tds rate and section for incineration charges

This discussion clarifies the TDS (Tax Deducted at Source) applicable to incineration charges. It explains that these charges can be treated as payments for a contract of work or service. Therefore, TDS should be deducted under Section 194C of the Income Tax Act, which applies to contractor payments. The applicable TDS rate is either 1% or 2%, depending on the specific circumstances of the contract.