08 July 2008
As per IT, the rate applicable for contractors and sub contractors (194C) are 2% & 1 % respectively plus surcharge and cess.But the payee can apply for a lower rate of TDS also. For lower rate of deduction of tax or no deduction of tax, the payee has to file an application and get a certificate from the assessing officer and submit it to the payer. For 194C the payee has to apply in Form 13.
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