(1) Every other than Individual and Hindu undivided 7 responsiple for making payment to any dealer (herex in this section referred to as “the contractor") for dis of any liability on account of valuable consid payable for the transfer of property in goods (whet goods or in some other form) in pursuance of a com shall, at the time of credit of such sum to the acco the contractor or at the time of making such payez the. contractor, either in cash or in any other deduct an amount equal to two per cent from s ie under this, Act <n account of total value of contract.
1 Where, on 2b application being made by the arin this behalf, the Commissioner is satisfied tat 4:5 contract involves both transfer of property in ani Jabour and service, or involves only labour and and accourdingly, justifies deduction of tax on a Bet He suin in repect of the works contract or, as the
2... be, justifies no deduction of tax, he shall, after tr the contractor 4 reasonable opportunity of being cant him such cerlificate as may be appropriate:
Provided thal nothing in the said certificate shal] = tae assessment of the sales tax fiabifiry of the scior under this Act:
ovided further that where arly deduction has been Spy a comractar front the payments madee his subactor in accordance sith sub-section (3) the amounts payments shall be deducted from the.amount on deduction is fo be made under this sub-section ‘0 production af acertificate as prescribed in sub- 5) ofthis section.
43) Any contractor responsible for making any ¢ or discharge of any liabitity to any sub- Bicoctor, i pursuance of a contract with the sub- Erector, for the transfer of property in goods (whether “ods of in some other form) involved in the execution, aze wholly oF in part, or the work underlaken by the yall, at the tinie of such paymentor discharge, Bech of by cheque or draft or any other mode, deduct Eemount equal fo two per cent of such payment or SSparge, purporting to be part or full amouirit oF the tax ste under this Act on such tota} value of transfer the bill or invoices saised by, (he sub-contractor as
Provided that ne ducuction under this sub-section be made on the amount on which deduction has Sfendv bean made under sub-section (#) or sub-section J exbjece (o production of @ certificate as prescribed in ction (5) of this section.
(4) The amount duducted under sub-section (1) or cection (2) or sub-section (3) shall be deposited into Govecnment treasury by the person making such lion befure the expiry of fifteen days following, the hich such deduction is made jn the manner as th in wl , be prescribed.
(5) The person making such deduction under subfon (1) or sub-section (2) ar sub-section (3) shall, at nave of payment or discharge, furnish to the deater n whose bills or mvaices such deduction is made a Fificate as may be prescribed in respect of the amount ructed, the rafe at which it has been deducted and the s of deposit into the treasury.
(6) Any duduction ‘made in accordance with the pravisious of this section and credited into the Government treasury shall be treated as payment of tax on hebalfof the person from whose bills or invoices the deduction has been made, and credit shall be given lo him for the aniount so.
deducted on the production of the certificate, referrect to in sub-section (S) above, in the assessment made for the relevant assessinent year.
(7) If any person as is referred to in sub-section (1) or sub-section (2) or sub-section (3) fails to make the - deduction or, after deducting fails to deposit the aniount so deducted as required by sub-section (4), the assessing, authority may, after giving to sch person an opportunity of being heard, by order in writing, direct that sucht person shall pay, by way of penalty, a sum not exceeding twice the amount deductible under this section besides tax duductible but not.so deducted and, if deducted, not so déposited inta the Government treasury.
(8) Without prejudice to the provisions of sub-section 2), if any person fails tomake deduction, or, after deducting.
fails to deposit the amount so deducted, he shall be Jiable fo pay simple interest at the rate of hwo per cent per month on the amount deductible under this section but not so deducted and, if deducted, not so deposited from the date ‘on which such amount was deductible to the date on which such payment is actually deposited,
(9) Where the amount has ot been deposited after dediiction, such amatnt together with interest and penalty referred ta in sub-section’(7) and sulv-section (8) shall’be a charge upon all the assets of the person concerned and recoverable as arrears of land revenue.
CHAPTER II TAX CLEARANCE CERTIFICATE AND ACCOUNTS
8. Tax Clearance Certifieate—(1) Notwithstanding anything contained in any other law for the time being in force, io person shall enter into any works contract-with any dealer for execution by him of such works contract and shall make payment to such dealer for execution of works contract, unless the Commissioner certifies in the prescribed manner that such dealer-—
(i) has no liability to pay tax, interest, penalty or ‘any amount due or has not defaulted in fusnishing any return or returns together with the receipted challan or challans showing payinent of all tax payable under this Act,
(ii) has not defaulted.in making payment of tax otherwise payable by or due from tim under this Act;
(iii) has made satisfactory provision for securing the payment of tax by furnishing bank guarantee in favour of the Commissioner or otherwise, as the case may be;
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(iv) tas made an underiaking ior getting himself registered as dealer observing and complying provisions of this Act, if the contractor has started the business of wansfer of property in goods involved in exccution of works combact for first time in Delhi.
prescribed form, the Commissionér, after making such enquiry as he deems ft aud proper, is satisfied and issues a certificate in the prescribed form to the effectthat such dealer is not Kable to pay tax under section 5 or that he has paid tax payable by, or due from him under that seetion, or has undertaken to register itselfand ta comply the provisions of the Act and the Rules, payment may, notwilhstanding anything contained in sub-section dh), be made to such dealer for execution by hin of a works contact referred in section 5 on production by his of such certificate of the Commissioner.
(3) The application for the certificaterequired under stih-section (1) shall be made by the contractor or dealer to the Commissioner and shal! be in such form and shall contain such paniculars as may be prescribed.
{2) Information to be furnished for awarding a works contract.—Any persan catering into any contract’ letter of intent with any contractor fot transfer of property in goods (whether as goods, or in some other form) involved in the execution of works contract shall furnish within fifteen daysfrom the date of signing of the contract’ lever of intent such informnation as may be preseribedl.to the assessing: authority under whose jurisdiction the contraztar's place of business issituated. Failuce t0 do so, shall entail a penalty not exceeding five hundred rupees per day of default after affording such persona reasonable opporunity of being heard.
10, Accoutnts—(1) Fvery dealer liable to pay tax under this Act, shall keep at his place of business @ Tuc gecount in the mamier and form.as may be prescribed.
(2) All other provisions relating 16 accounts, inspection, senrch and seizure as preserited in ‘Delhi Sales ‘fax Act shall apply mutatis mutandis. Wie
CHAPTER TV REGISTRATION, REFURNS AND PAYMENT OF TAX 11, Registration.—{1) No dealer shall, while being liable to pay tax under this Act, execute or continue to execule a works contract, unless: he possesses a valid certificate of registration as provided by-this Act: i:
Provider that it shall be lawful for the dealer to execute or continue to execute a warks cottradl ifthe dealer has applied for registration within the prescribed time.
(2) Every dealer required to possess acertificate of registration shall apply in sueh manner and to such authority as may be prescribed.
(2) Wheré on application made by a dealer in the © XTRAORDINARY _ [Pax
(3) The provisions of section 18 of the Deily Tex Act and Rules framed thereunder os regards secs Shall apply to a dealer under this Act motatis mung (A) Af the aytherity, after such wquicy es ut od fit, is satisfied that an application for registration order, it shall register the applicant und issue to cenificate af registration in the prescribed form,
(5) The authocity may, after considerin:
time, the certificate of registration.” s
(6) ifany person, upon an application made b:
has been registered as a dealer, and thereafter it is fo that he ought not to have been so registered unde provisions of this section, he shall be {iable 10 pay his sales mad¢ from the date on which his registr:
certificate (ook affect until it is cancelled, notwithstar that he may not be liable-to pay tax under section
(7) Where a registered cealer discontinues, tra or otherwise disposes of his activity ofexecution of w contract or the carnover of sales of a registered di has, during any year, not exceeded the Jimils specifi section 3 and on an application made (or cancellations his registration certificate, the prescribed authority cancel .the registration with effect fram such date inny fix in accordance with the mites. ‘
(8) Where ihe Commissianer is satisfied that registered dealer has discontinued, transferred & olltenvise disposed of the activity of execution of weal contract and the dealer has failed to apply under ss section (6) for cancellation of registration, Commissioner may, afier giving the dealer a reasons opportunily of being lieard, cancet the registration ¥ effect from such date as he may Fix to be the date which the said activity has been discontinued, transfé or otherwise disposed of, as the case may be: 3
Provided that the cancellation of certificate & xegistration on an application of the deales or otherwe shall not affect the liability of the dealer to pay the (including any interest and penalty) due for any perk upto the date of cancellation whether suct lax (inclu any interest and penalty) is assessed before the date cancellation but remains unpaid, or is assessed there: :