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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....industry-Clarification regarding Circular No.433 Dated 25/9/1985 Under section 194C of the Income-tax Act, 1961, a liability is cast on any person responsible for paying any sum of any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between him and (a) the Central Government or any State Government; or (b) any local authorit....

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.... to. 3. The Board have had occasion to examine the question whether a munshi engaged by the bidi manufacturers is a contractor or an agent and whether the provisions of section 194C of the Income-tax Act, 1961, would apply to the payments made to him. The Board are advised that in view of the position that the definition of the expression "contractor" in the Bidi and Cigar Workers (Condition of E....