(1)Any person responsible for making payment of any sum to any dealer as a consideration for the sale or supply of any goods in pursuance of a contract between such dealer and the Central Government or a .State Government (hereinafter referred to in this Section as the purchaser), Shall before crediting such sum to the account of the dealer or before payment thereof in cash or by issue of a cheque or draft or by any other mode, deduct an amount equal to the amount payable by the purchaser to the dealer by way of tax, [whether or not such amount is shown by the dealer separately in his bill] [Substituted by M P. Act No. 22 of 2006.], where the total amount of the Act exceeds rupees five thousand and shall pay it to the State Government in such manner as may be prescribed.
