Section 194C of the Income-tax Act, 1961 – Deduction of tax at source – Payments to contractors and sub-contractors – Applicability of TDS provisions of section 194C on Contract for Fabrication of Article or Thing as per Specifications given by the Assessee – Contradiction between two Circulars of CBDT – Resolution thereof
CIRCULAR NO. 13/2006, DATED 13-12-2006
1. Representations have been received in the Board seeking clarification on the applicability of section 194C on such transactions, where the assessee has outsourced certain work relating to fabrication or manufacturing of article or thing in accordance with the specifications given by the assessee.