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After the government publishes a reliable translated text in English through an official gazette, we will incorporate the Authentic English Text here.

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52.Deduction from payment to contractors, etc:

(1) Where any payment is to be made by a specified person to a resident on account of-

(a) execution of a contract, other than a contract for providing or

rendering a service mentioned in any other section of Chapter VII;

(b) supply of goods;

(c) manufacture, process or conversion;

(d) printing, packaging or binding;

the person responsible for making the payment shall, at the time of making such payment, deduct tax at such rate, not exceeding ten percent (10%) of the base amount, as may be prescribed:

Provided that–

(a) the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;]

(bb) the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;]

(c) where any imported goods on which tax has been paid at source under section 53 is supplied, tax at source on the said supply shall be B-A, where-

A= the amount of tax paid under section 53,

B= the amount of tax applicable under this section if no tax were paid under section 53.

(d) where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the said supply shall be B-A, where-

A = the amount of tax paid under section 53E,

B = the amount of tax applicable under this section if no tax were paid under section 53:

Provided that in case of the goods supplied by any distributor or any other person under a contract as referred in sub-section (3) of section 53E, the term “B” as mentioned in paragraph (d) shall be computed as follows:

B={the selling price of the company to the distributor or the other person as referred in section 53E (3)} x 7% x 5%.