Compliance of statutory requirement for tds u/s 194C - Income Tax - 518/CBDT

INSTRUCTION NO. 518/CBDT Dated : Feburary 28, 1973 Section(s) Referred: 194C ,37(2C) Statute: Income - Tax Act, 1961 Reference is invited to the Ministry of Finance (Department of Revenue and Insurance) Circular No. 95(F. No. 275/9/72-ITJ), dated 15th November, 1972. The Board observe that inspite of clear instructions having been issued in this regard, there are instances of deviation in practice from the procedure laid down of obtaining quarterly statements prescribed in Rule 37-(2C) of the I.T. Rules and accounting for collections particularly where payments to contractors are made through or by branch offices of the person. The Board would like to emphasize that:- (a) it is the responsibility of the ITO having assessable jurisdiction over a 'person' making payments to contractors to account for collection, enforce compliance with statutory requirements u/s 194C and take appropriate penal action as provided in law in cases of default; (b) for facility of payment to Government account of tax deducted at source, a branch of the 'person' responsible for deduction of tax may utilise challans obtained from the local ITOs clearly indicating the P.A.N. of such 'person' and the designation of the assessing I.T.O. therein. Any instructions/intimations issued by the Commissioners of Income-tax at variance with the above, should be immediately withdrawn or suitable modified under intimation to the Board.