Payment to daily wager cannot be said to be a contractual payment.
Payment made by the assessee to the employees employed by it on daily wage basis cannot be said to be a contractual payment, as such the assessee in such cases was not required to deduct tax from such payment u/s. 194C of the Act. Where the assessee had produced confirmation from the parties to whom payments were made, confirming the fact that they have included the amount received from the assessee as their income and paid taxed thereon, the assessee cannot be treated as assessee in default under the provisions of s. 201(1) of the Act for non deduction of tax at source. [CIT v DewanChand (2009) 17 DTR 337 (Del.)]