(1) Where any company or firm is making a payment or allowing an amount to a distributor, called by whatever name, or to any other person by way of commission, discount, fees, incentive or performance bonus or any other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods or services, the person responsible for payment shall, at the time of payment or allowing the amount, deduct or collect tax at the rate of 10% (ten percent) of the amount of payment or the amount allowed or the value of benefits allowed, as the case may be.

(2) Where any company or firm is making a payment in relation to the promotion of the company or its goods to any person engaged in the distribution or marketing of the goods of the company, the person responsible for payment shall, at the time of payment, deduct tax at the rate of 1.5% ( one point five percent) of the payment.

(3) Any company or firm, other than an oil marketing company, which sells goods to—

(a) any distributor; or

(b) any other person under a contract, at a price lower than the retail price fixed by such company or firm ¹[or any other person], shall collect tax from such distributor or such any other person at the rate of 5% (five) percent on the amount equal to B x C, where-

B = the selling price of the company or firm to the distributor or the other person;

C = 5% (five percent):

Provided that a cigarette manufacturing company or firm shall collect tax at the time of sale of its goods to such distributor or to such other person at the rate of 3% (three percent) of the difference between the sale price to the distributor or the other person and the retail price fixed by such company or firm.