India - Income Tax Act 2010 - Saarc

1.751 CH. XVII - COLLECTION AND RECOVERY - DEDUCTION AT SOURCE S. 194Cor by issue of a cheque or draft or by any other mode, whichever is earlier, deductan amount equal to—(i) one per cent where the payment is being made or credit is being givento an individual or a Hindu undivided family;(Contd. from p. 1.750)crediting shall be deemed to be credit of such income to the account of the payee and theprovisions of this section shall apply accordingly.Explanation III.—For the purposes of this section, the expression “work” shall alsoinclude—(a) advertising;(b) broadcasting and telecasting including production of programmes for such broadcastingor telecasting;(c) carriage of goods and passengers by any mode of transport other than by railways;(d) catering.(3) No deduction shall be made under sub-section (1) or sub-section (2) from—(i) the amount of any sum credited or paid or likely to be credited or paid to theaccount of, or to, the contractor or sub-contractor, if such sum does not exceedtwenty thousand rupees:Provided that where the aggregate of the amounts of such sums credited or paidor likely to be credited or paid during the financial year exceeds fifty thousandrupees, the person responsible for paying such sums referred to in sub-section (1)or, as the case may be, sub-section (2) shall be liable to deduct income-tax under thissection:Provided further that no deduction shall be made under sub-section (2), from theamount of any sum credited or paid or likely to be credited or paid during theprevious year to the account of the sub-contractor during the course of businessof plying, hiring or leasing goods carriages, on production of a declaration to theperson concerned paying or crediting such sum, in the prescribed form and verifiedin the prescribed manner and within such time as may be prescribed, if such subcontractoris an individual who has not owned more than two goods carriages atany time during the previous year:Provided also that the person responsible for paying any sum as aforesaid to thesub-contractor referred to in the second proviso shall furnish to the prescribedincome-tax authority or the person authorised by it such particulars as may beprescribed in such form and within such time as may be prescribed; or(ii) any sum credited or paid before the 1st day of June, 1972; or(iii) any sum credited or paid before the 1st day of June, 1973, in pursuance of a contractbetween the contractor and a co-operative society or in pursuance of a contractbetween such contractor and the sub-contractor in relation to any work (includingsupply of labour for carrying out any work) undertaken by the contractor for theco-operative society.Explanation.—For the purposes of clause (i), “goods carriage” shall have the same meaningas in the Explanation to sub-section (7) of section 44AE.(4) [***](5) [***].’47. See also Circular No. 433, dated 25-9-1985, Circular No. 487, dated 8-6-1987, CircularNo. 502, dated 27-1-1988, Circular No. 558, dated 28-3-1990, Circular No. 681, dated8-3-1994, Circular No. 713, dated 2-8-1995, Circular No. 714, dated 3-8-1995, Circular No.715, dated 8-8-1995, Circular No. 723, dated 19-9-1995 and Circular No. 13/2006, dated13-12-2006. For details, see Taxmann’s Master Guide to Income-tax Act.See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB, 37 and 37BA and Form Nos. 13, 16A, 26AS and26Q.48. For the meaning of the terms/expressions “carrying out any work” and “contractor”, seeTaxmann’s Direct Taxes Manual, Vol. 3.