Processing contractor payments

How contractor payments work

Unlike employee payroll, contractor payments in CLMS are triggered manually based on approved timesheets or milestone completions. There is no automated monthly run — you initiate payments when ready.

Generating a payment batch

1. Log in to admin.dapplon.com
2. Go to CLMS > Payments
3. Click Create Payment Batch
4. Select the payment period (e.g., June 2026)
5. Dapplon shows all contractors with approved timesheets or completed milestones for that period
6. Review the payment amount for each contractor:

- For hourly contracts: Approved Hours × Hourly Rate

- For project contracts: Milestone payment as defined in the contract

1. Check the TDS amount (if applicable) — Dapplon deducts TDS at the applicable rate for each contractor type
2. Click Confirm Batch

TDS on contractor payments

Dapplon automatically calculates TDS on contractor payments under Section 194C or 194J depending on the nature of work:

• Technical/professional services: 10% TDS
• Contract labour: 1% (individuals) or 2% (companies)

The contractor receives a TDS certificate (Form 16A) which they can use when filing their taxes.

Downloading payment advice

1. After confirming the batch, click Download Payment Advice
2. The Excel file lists each contractor, their bank account, and the net payment amount
3. Upload this to your bank's bulk payment portal to initiate the transfers
4. Mark the batch as Paid in CLMS once the bank transfer is initiated