The Law of TDS u/s 194C: Controversies & Solutions
Shri. K. C. Singhal, Advocate
Non-compliance with s. 194C has draconian consequences for the assessee. Sadly, due to numerous legislative amendments, CBDT circulars and conflicting court rulings, the law is not very intelligible. The author, a former Vice-President of the Tribunal, uses his unique experience as Judge & Lawyer to explain the entire law in a simple & straightforward manner
This section was introduced in the year 1972 and subsequently amended from time to time. The scope of the said provision has been explained by CBDT from time to time through various circulars bearing Nos. 86 dated May 29, 1972, 93 dated 26.9.1972, 558 dated 28.3.1990, 681 dated 8.3.1994, 714 dated 3.8.1995, 723 dated 19.9.1995, , 715 dated 8.8.1995 and 13 dated 13.12 2006. This section has also been substituted by Finance (No 2) Act 2009.
This section provides that tax is to be deducted at source against payments made to contractors/subcontractors. The followings are the salient features of the section as it stands today: