Businesses paying contractors for civil work, fabrication, transport, or job work must deduct TDS under Section 194C when payment crosses thresholds.
Compliance checklist
- Obtain PAN of contractor and verify status (individual vs company)
- Apply correct rate — including single payment and aggregate limits
- Deposit challan and report in quarterly Form 26Q
- Issue Form 16A and reconcile with Form 26AS
We manage deductor compliance via TDS return filing and our small business TDS guide.
