Section 194C of the Income Tax Act, 1961 mandates TDS deduction on payments to resident contractors or subcontractors by entities like governments, companies, and co-operative societies. The 'work' includes activities like broadcasting, advertising, and catering. TDS rates under Section 194C are 1% for individuals/HUFs and 2% for other entities, with a 20% rate if the PAN is not provided. TDS must be deducted if a single payment exceeds Rs.30,000 or total payments in a year exceed Rs.75,000. Timely TDS deposit is essential to avoid complications. Understanding 194C TDS rates and deduction rules could ensure compliance and avoid future issues.
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