2004 (2) TMI 43

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... - The petitioner, who has been awarded the contract for collection of octroi by respondent No. 3, complains that while making a payment to it, tax is being deducted at the rate of 2.30 per cent, at source under the provisions of section 194C of the Income-tax Act, 1961 (for short "the Act"), on the collections made by it and not on the payments being made to it. This issue had come up for cons....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on of law under which such a deduction could be made from the total collections made by the contractor. Sub-section (1) of section 194C of the Act, which is relevant for this purpose, reads as under: "194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or (j) any firm, shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, ....