TDS on contractors.

Vishal (CA Final.) (77 Points)

20 April 2011  

Hello friends,

If an entity is deducting TDS on contractor u/s 194 C, in that case is there a necessity of a contract between the two entities. What is the basic thing to identify whether TDS is to be deducted in a contract transaction?

Similarly in TDS on rent is there a compulsion of a rental agreement between the two entities?

Please answer with appropriate sections.

Vishal.