Section 27(2) in The Punjab Value Added Tax Act, 2005
(2)Any contractor responsible for making any payment or discharge of any liability to any sub-contractor or in pursuance of a contract with the subcontractor, for the transfer of property in goods (whether as goods or in some other form) involved in the execution whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount, equal to two per cent of such payment or discharge, purporting to be a part of the tax, payable under this Act on such transfer, from the bills or invoices raised by the sub-contractor, as payable by the contractor.
