16 June 2009
Hi, Subcontractor for the purpose of TDS includes any person who has entered into a contract with principal contractor for carrying out whole or part of the work assigned to or undertaken by the main contractor. And as per Sec.194C Any contractor person (other than individual or Hindu undivided family ) responsible for paying any sum to any resident sub- contractor in pursuance of a contract with the sub-contractor for carrying out, or for the supply of labour for carrying out, for carrying out the whole or any part of the work undertaken by the contractor or for the supplying whether wholly or partly any labour which the contractor has undertaken to supply shall, deduct tax at the time of credit of such sum to the account of the sub-contractor or to any other account in the books of payer or at the time of payment whichever is earlier.
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