Any person responsible for paying any sum to any resident contactor for carrying out any work (including supply of labour for carrying out any work) under a contract in pursuance of a contract between contractor and person specified in clause (ii) shall deduct income tax at the time of such payment thereof in cash or by issue of a cheque or draft or by any other mode or its credit to contractors account or any other account, by whatever name called, whichever happens earlier.

Person's Specified:

The following specified persons shall be required to deduct tax at source in case the payment is made by them to any resident contractor -

1. The Central or State Government
   
   

2. Any local authority
   
   

3. Any corporation established by or under a Central ,State or Provisional Act
   
   

4. Any company
   
   

5. Any co-operative society
   
   

6. Any authority constituted in India by or under any law ,engaged either for the purpose of dealing with and satisfying the needs for housing accommodation or for the purpose of planning ,development or improvement of cities ,towns and villages or for both .
   
   

7. Any society registered under the Societies Registration Act ,1860 or under any such corresponding law .
   
   

8. Any trust.
   
   

9. Any university or deemed university
   
   

10. Any firm
    
    

11. Any individual or a Hindu Undivided Family ,whose total sales ,gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of Section 44AB during the financial year preceding the financial year in which such sum is credited or paid to the account of the contractor .