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Tax is not required to be Deducted at Source.

The following ponts are about Tax is not required to be Deducted at Source (TDS).

• When the amount paid or credited or likely to be paid or credited to the account of the contractor or sub-contractor does not exceed RS.30,000/-. However, w.e.f. 01-07-2010, if the aggregate of such amounts paid or credited during the financial year exceeds Rs. 75,000/-, then tax has to be deduced at source.
• Payments made to a resident contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his permanent account Number the person paying or deducting such sum.
• When the Assessing Officer having jurisdiction over the Tax deductor has issued certificate u/s 197(1) to the payee/tax deductee, directing either no deduction or deduction at lower rate.
• Payments made to persons specified in Sec. 196 (Govt.,RBI, Specified Corporation/ Mutual Fund).
• Payments made in pursuance to works executed under National Rural Employment Programme (NREP) or Rural Landless Employment Guarantee Programme (RLEGP). [Cir. No. 502 dated. 27.02.1988]
• Payments made for contract for sale of goods.
• Exemption to sub-contractors having two vehicles in the case of individual who is a subcontractor engaged in business of plying, hiring or leasing of goods carriages, owns two vehicles only, submits declaration in form no 15I, payer is a contractor. Payer shall furnish to the Dept. the particulars in for no 15J on or before specified date.
• Manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than the customer .

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