(1)Notwithstanding anything contained in section 50 or any other law of contract to the contrary, any person responsible for making payment of any sum to any contractor (hereinafter referred to in this section as deducting authority) for carrying out any works contract, which involves transfer of property in goods, in pursuance of a contract between the contractor and-(a)The Central Government or any State Government, or(b)Any local authority, or(c)Any authority or corporation established by or under a statute, or(d)Any company incorporated under the Companies Act, 1956 (1 of 1956) including any State or Central Government undertaking, or(e)Any co-operative society, or any other association registered under the Societies Registration Act, 1860 (21 of 1860),shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or any other mode, whichever is earlier, deduct, subject to the certificate, if any, produced by the contractor in pursuance of sub-section (5), an amount towards tax equal to four per centum of such sum in respect of the works contract, if the value of works contract exceeds rupees fifty thousand.
