Where a contractor not being an Individual or a HUF engages a resident sub-contractor for carrying out any work, in whole or in part in relation of any work undertaken by him, he is to deduct income tax at applicable rates from the sum payable to sub-contractor either at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode or at the time of credit it's credit to Sub- Contractor account or any other account whichever is earlier.

PLEASE NOTE:

• U/s 194C (2) Tax is required to be deducted at source in case of an Individual/ HUF provided the total sales, gross receipts or turnover from the business or profession carried on by the such Individual or HUF exceeds Rs. 40,00,000/ 10,00,000 as the case may be being the limits specified for tax audit u/s 44AB.