Section 194CPayment to contractor/sub-contractor

Section 194C states that any individual liable for paying any total to the  project worker for completing any work (including the supply of labor), in compatibility of an agreement between the worker for hire and the following.

  • The Central Government or any State Government
  • Any local authority
  • Any company
  • Any co-operative society
  • Any trust
  • Any university or deemed university
  • Any firm.

What are the rate of TDS

No. Nature of payment TDS(If pan applicable) TDS (if pan not applicable)
1. Payment/Credit to resident individual or HUF 1% 20%


2. Payment/Credit to any resident person other than individual / HUF 2% 20%
3. Payment/ credit to Transporters NIL 20%