Tax deduction at source: government payors may be required to withhold from supplier payments with prescribed remittance and credit rules.

The Government may require specified public bodies and notified persons to perform tax deduction at source from payments to suppliers of taxable goods or services above a prescribed threshold, calculated exclusive of tax. Deductors must remit withheld amounts within the prescribed timeframe, furnish a certificate to the deductee detailing contract value, rate and amount deducted, and face a daily late fee for failure to issue the certificate. Deductees claim credit in the electronic cash ledger as per the deductor's return; interest and default procedures apply where withheld sums are not paid, and refunds for excess or erroneous deductions are governed by the statutory refund provisions.

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