28 May 2009
It will covered under section 194C under contractors & sub contractors. As per this section in case contract amount exceeds Rs.20K in case of single contract amount & Rs 50K for the year for all contract amount.
The rate will be for contractors : 2% of contract amount + Surcharge @ 10% on 2%(if applicable)+ education cess 3% on (2%+10%) i.e. 2.26% Subcontractors : 1% of contract amount + Surcharge @ 10% on 2%(if applicable)+ education cess 3% on (2%+10%) i.e. 1.133%
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