04 October 2007
IT IS A CONTRACT UNDER 194 C ( "A CONTRACTOR IS ONE WHO MAKES AN AGREEMENT WITH ANOTHER TO DO A PIECE OF WORK......" ) TDS APPLICABLE @ 2.06%( OTHER THAN AN ADV. CONTRACT) FOR BELOW RS. TEN LAKHS( OF AGGREGATE OF PAYMENT SUBJECT TO TDS P.A) WHERE RECEIPEINT IS IND.,HUF/BOI/AOP. OTHERWISE 2.266%. half of the ABOVE rates for TDS FOR sub contractors PL. REFER SEC. 194 C FOR DETAILED RATES OF TDS. SINCE THERE IS REGULARITY OF SERVICE AND PAYMENT AT PERIODICAL INTERVALS,EVEN IN THE ABSENCE OF A WRITTEN AGREEMENT ,THE CHARACTER OF A CONTRACT IS EVIDENT. IF A SINGLE PAYMENT NOT EXCEEDING RS. 20000 OR AGGREGATE PAYMENTS DURING THE FINANCIAL YEAR NOT EXCEEDING RS. 50000 MADE THEN NO TDS APPLICABLE. R.V.RAO
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