20 March 2021
Sir If a contractor is engaged in Construction work and taken a contract of Government Institute for construction of a Building (Material + Manpower) and raise a bill. at what rate of TDS need to be deducted from bill by Government Institute. condition; Bill printed in name of contractor ( ABC Contractor) point of doubt is whether contractor's bill is considered as "Individual" or "Others"
21 March 2021
The status of payee i.e. deductee as per Income Tax Act is to be considered. If the payee is a concern which is proprietary entity the rate of TDS u/s 194C should be 1% as TDS rate in case o Individual ad HUF is 1%. Printed name on bill hard matters. Check 4th Character of PAN and if it is P or H go ahead with TDS rate of 1% only.
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