TMI Blog2004 (2) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... other mode. Thus, it is clear that the tax has to be deducted only on the payments which are made to the contractor and not on the amount which is collected by it on behalf of the municipal committee. - The writ petition is disposed of with the direction that respondent shall be entitled to charge income-tax under section 194C on the amount paid to the petitioner and not on the basis of the gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 983 of 1998 (Darshan Singh and Co. v. State of Punjab), which was disposed of vide order dated March 1, 1999, with the following directions: "In view of the above the writ petition is disposed of with the direction that the third respondent shall be entitled to charge income-tax at the rate of 0.5 per cent, of the amount paid to the petitioner and not on the basis of the gross amount collected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntractor and- (a) the Central Government or any State Government; or (b) any local authority; or (c) any corporation established by or under a Central, State or Provincial Act; or (d) any company; or (e) any co-operative society; or (f) any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (ii) in any other case two per cent., of such sum as income-tax on income comprised therein." A bare perusal of the above section shows that the tax has to be deducted from the payments made to a contractor at the time of credit of such amount 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. Thus, it is clear th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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