If you pay a single payment to contractor amounting to Rs. 30000/- or multiple payments to contractor in a financial year (less than Rs. 30000/-), but aggregating to Rs. 100000/-, you need to deduct and pay TDS as well as file TDS returns as per Section 194C.
TDS rate is 1% in case of your contractor is an Individual or a HUF and 2% in case in other cases like Companies or LLP.
Below are the steps to make the TDS payment.
1. Click on the link https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
2. Select Challan No. /ITNS 281.
3. Select 0021 Income Tax Other than Companies in case of Individuals or Select 0020 in case of
4. Select 200 TDS Payable by Taxpayer.
5. Select Type of Payment as 94C
6. Select Mode of Payment.
7. Enter TAN.
8. Select Assessment Year.
9. Enter City, State, Pin Code.
10. Enter Captcha Code.
11. Click Proceed.
12. On Next Page confirm name (in masked form), Financial Year and proceed to the bank page.
13. On bank page, please enter the amount and complete the payment.
Post a Question in the Comments in case of any Query or Clarifications or Free Consultation.