15 December 2009
Please define Contract under Income Tax Act. It is necessary that contract should be in writting and enforceable in the court of law for Tax purpose
15 December 2009
The term contract has been defined in the Income Tax Act vide s. 194C(1).
It says any person responsible for paying any sum to any resident (hereinafter referred to as the contractor) for carrying out any work including supply of labour for carrying out any work....
For the purpose of Income-tax; it is not necessary that contract should be in writing. From the nature of transactions; it is decided that it is a contract.
16 December 2009
For the purpose of enforcement of contract following should be kept in mind.
A contract is established when it is proposed by first party and accepted by second party. This acceptance may by expressed by action or in writting. Once the acceptence is communicated by any mean, one can say that a legal contract has been established.
It is not necessary that a contract should be in writting only, however, one should be in a possition to prove the factors of the contract.
As per Evidence Act, the documents are prevailed over all other evidences.
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