Deduction of income-tax at source-Section 194C of the Income-tax Act, 1961-Payments to contractors and sub-contractors

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....bsp;        S.R. Wadhwa,             Director,             Government of India. To             All State Governments. Subject: Deduction of income-tax at source-Section 194C of the Inco....

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....nt due to the contractor or the net payment was essentially to be decided in the light of the terms of the particular contract and the conduct of the parties thereto. It was also stated that where the contractor had undertaken to construct a building or a dam, e.g., a composite works contract, and the Government or the other specified person had undertaken to supply all or any of the materials nec....

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....ideration, while estimating the profits of a contractor. In the facts of that case, it was held that in cases of 'lump sum contracts' where in sub-stance and in reality stores and materials supplied to the contractor by the department were fixed or incorporated into the work, the cost of such stores and materials could not be included in the turnover of the contractor as there was not even a theor....