JUDGMENT P. VENKATARAMA REDDI, J. The petitioners are said to be contractors doing various works entrusted by the Roads and Buildings Department. They questioned the memo issued by Engineer-in-Chief dated February 24, 2000 requiring the executive engineers to effect recovery of sales tax at 4 per cent from the work bills with effect from January 1, 2000. The short recovery of sales tax was directed to be regularised while passing the other bills of the contractors. The memo issued by the Engineer-in-Chief is apparently a sequel to the amendment made to section 5-H of the Andhra Pradesh General Sales Tax Act, 1957, enhancing the maximum percentage of tax deduction at source to 4 per cent as against the pre-existing rate of 3 per cent. The memo issued by the Engineer-in-Chief seems to be based on a misunderstanding of the amendment made to the Andhra Pradesh General Sales Tax Act by Act No. 19 of 2000. The mere fact that the maximum rate at which the tax has to be deducted at source has been increased does not automatically result in the liability to deduct the tax at source at the increased rate unless the relevant rule is amended. The wording used in section 5-H "... an amount calculated at such rate as may be prescribed" has evidently been ignored by the first respondent while issuing the impugned memo. The percentage of tax deduction at source is specified in rule 17-I(1) of the Andhra Pradesh General Sales Tax Rules, 1957. Unless and until the said rule is amended, it is clarified that, the deduction of tax at source shall be done at the rates specified therein, depending upon the nature of the contract. The above clarification shall be kept in view while passing the bills of the petitioners. It is open to the respondents concerned to insist on the production of sales tax registration certificates before passing the bills. The writ petitions are disposed of accordingly with the above direction, after hearing both the counsel at the stage of admission. Writ petition disposed of accordingly.