09 August 2008
TDS from payment to Contractors & Sub Contractors (Sec. 194C of Income Tax Act): Any person responsible for paying any sum to any resident contractor for carrying out any work(including supply of labour for carrying out any work)in persuance of contract between a specified person and the resident contractor is required to deduct the tax at source. For this purpose Payer himself is treated as person responsible for Paying the sum to the contractor. Sub Contractor: A Sub Contractor is one who takes portion of contract from principal contractor or another Sub Contractor. Contract: means an agreement between a Contractor and a other person to do a piece of work for remuneration. e.g. advertising, catering, Broad casting & telecasting, carriage of goods and passangers by any mode of transport other than by railway.
Sub Contract: a Contract between Sub contractor and Contractor or another Sub Contractor to do a piece of work.
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