Tax deduction at source requires notified government entities to withhold tax from supplier payments, enabling electronic credit to recipients. Government may require specified government departments, local authorities, agencies and notified persons to deduct tax at source from payments to suppliers of taxable goods or services under contracts exceeding a prescribed value; deductions are not made where the supplier's location and place of supply are in a different State or Union territory from the recipient's registration, and for deduction purposes the value of supply excludes central tax, State tax, integrated tax and cess as indicated in the invoice.