tds

TDS on Contractor Payments: Section 393

Understanding TDS on payments to contractors under Section 393 including rates and compliance.

Alok K Acharya & Associates
1 March 2025·Updated 31 August 20261 min read
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TDS on Contractor Payments: Section 393#

What is Section 393?#

TDS on payments to contractors.

Applicability#

  • Payment to contractors
  • Sub-contractors
  • Carriage contractors

TDS Rates#

  • 1% for individual/HUF
  • 2% for others
  • 20% if PAN not provided

Threshold#

  • Single payment: ₹30,000
  • Aggregate in FY: ₹1 lakh

TDS Certificate#

  • Form 131
  • Due within 15 days of TDS

Conclusion#

Contractor payments require TDS compliance.

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