What is Section 194C - TDS on Contracts?
Nexa Consultancy | Startup & Finance Glossary
A section of the Indian Income Tax Act that mandates deducting tax at source (TDS) on payments made to contractors. The rate is 1% for individuals/HUFs and 2% for others.
Startup Example: A startup pays a web development agency (a company) ₹1,00,000 for building their website. The startup must deduct ₹2,000 (2%) as TDS before making the payment.
Our compliance services cover all forms of TDS.