Tax deduction at source requires specified government entities to withhold tax from supplier payments when contract value exceeds a supply threshold.

Section 51 requires specified government entities and notified persons to deduct tax at source from payments to suppliers of taxable goods or services where the contract value exceeds a supply value threshold, with exclusions where supplier location and place of supply differ from the recipient's State of registration. Deductors must remit withheld tax monthly within ten days after month-end, issue prescribed certificates to deductees, face a capped daily late fee for delayed certificates, and incur interest if withheld amounts are not paid; deductees may claim electronic cash ledger credit and refunds for excess or erroneous deductions follow the Act's refund provisions.

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