Deduction of Income-tax at source-Section 194C of the Income-tax Act, 1961-Deduction from payments to contractors and sub-contractors in bidi manufacturing industry-Clarification regarding
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TDS on contractor payments under section 194C applies to munshis in the bidi industry; payments liable to deduction. The munshi engaged by a bidi manufacturer falls within the concept of contractor for the purposes of the withholding provision because statutory ... Summary
TDS on contractor payments under section 194C applies to munshis in the bidi industry; payments liable to deduction.
The munshi engaged by a bidi manufacturer falls within the concept of contractor for the purposes of the withholding provision because statutory definitions in the industry statute include sub-contractor, agent, munshi and similar intermediaries. The withholding provision extends to oral and implied contracts; by the nature of the services performed there is an implied contract between manufacturer and munshi. Accordingly, payments made to munshis in the bidi industry are subject to deduction under the withholding provision.
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