(2)[ Notwithstanding anything contained in any other provision of this Act, any person letting out a works contract of value exceeding three lac rupees to a contractor involving sale of any goods in the course of execution thereof by the contractor shall before making the payment of any amount towards the value of such contract to him, deduct at the rate of two percent or the prescribed rate for lump sum, in respect of a contractor who has opted for composition under Section 11-A, an amount towards the tax payable by the contractor under this Act:] [Substituted by M.P. Act No. 22 of 2006.][Provided that if the value of labour involved in the contract is more than fifty percent of the contract value and the contractor has not opted for composition under Section 11-A, the deduction towards the tax payable shall be made at the rate of one percent :Provided further that no deduction shall be made in respect of any sale or purchase taking place outside the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of import of goods into the territory of India :Provided also that no deduction shall be made from any payment made to any sub-contractor by a contractor where the contractor has opted for composition under Section 11-A.] [Substituted by M.P. Act No. 8 of 2007.]
