TDS needs to be deducted as per the below table on the Payment to Contractors/Sub-Contractors or Transporter by any person u/s 194C.
| Section | Nature of Payment | Threshold (Rs.) | TDS Rates | ||
| Individual & HUF | Other than Individual & HUF | Invalid/ No PAN | |||
| 194C | Payment to Contractors / Sub-Contractors by any person | 30,000 (Single Bill) or 1,00,000 (Aggregate Bills in the year) | 1% | 2% | 20% |
| 194C | Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format | - | - | - | 20% |
| 194C | Payment to Transporter not covered u/s. 44E | 30,000 (Single Bill) or 1,00,000 (Aggregate Bills in the year) | 1% | 2% | 20% |
e-TDS Return Form: Form 26Q needs to be filed by the Payer/ Deductor for that Quarter. And TDS needs to be deposited on or before the 7th of the next month via challan no. 281.
TDS shall be deducted at the time of:
- Crediting the sum to payee account or
- Actual payment of cash or
- Payment via cheque, draft or via any other source, Whichever is earlier.