TDS under Section 194C - Payment
to Contractors
I.
194C(1) - Any person responsible for paying
any sum to any resident for carrying out Any Work shall, at the
time of credit of such sum to the account of the contractor or at the time of
payment thereof in cash or by issue of a cheque or draft or by any other mode,
whichever is earlier, deduct an amount equal to—
(i) one per cent where the
payment is being made or credit is being given to an individual or a Hindu
undivided family;
(ii) two per cent where
the payment is being made or credit is being given to a person other than an
individual or a Hindu undivided family,
of such sum
as income-tax on income comprised therein.
II.
As per Explanation (iv)(c) given under
Section 194C defines “Work” to include “carriage of goods and passengers
by any mode of transport other than railways”
Therefore, TDS shall be deducted on the Taxi Hire Charges as rate prescribed under section 194C of the Income Tax Act, 1961
