Deduction of tax at source-Section 194C of the Income-tax Act, 1961-Deduction from payments to contractors and sub-contractors in bidi manufacturing industry-Clarification regarding

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..... ustry-Clarification regarding Circular No. 487 Dated 8/6/1987 Under file No. 275/30/82-IT(B) dated 25-9-1985, a Circular No. 433* was issued clarifying that the provisions of section 194C of the Income-tax Act, 1961, would apply in respect of payments made to Munshis and that would apply to payments under oral contracts also. The payments to Munshis which would be hit by the provisions .....

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..... getting their payments; (c) The workers are engaged by the Munshis and the Munshis ensure the quality and make payments. It is held that in the types covered by category (b) above, the bidi workers are employees entitled to the benefits of provident fund, etc. 3. In view of the above judgment, it is now further clarified that the deductions under section 194C to be made from the payments to .....

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