Chapter X PAYMENT OF TAX

Interest on delayed payment of tax.

(1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,-- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as "the deductor"), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as "the deductee") of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient. Explanation.--- For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice. (2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed. 1[(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.] 2* * * * * (5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub-section (3) of section 39, in such manner as may be prescribed. (6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted. (7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74 3[or section 74A]. (8)The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54: Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.

(1) Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. (2) The power to collect the amount specified in sub-section (1) shall be without prejudice to any other mode of recovery from the operator. (3) The amount collected under sub-section (1) shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made, in such manner as may be prescribed. (4) Every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month: Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement under this sub-section. (5) Any amount shown in the statement furnished by the operator under sub-section (4) shall be matched with the corresponding details of outward supplies furnished by the concerned supplier registered under this Act in such manner and within such time as may be prescribed. (6) The concerned supplier, in whose outward supplies the amount liable to be matched under sub-section (5) is claimed, shall be reflected in the electronic cash ledger of the said supplier in the manner prescribed. (7) The supplier of goods or services or both shall add the amount collected by the operator under sub-section (1) to the output tax liability of the said supplier in the electronic liability register in such manner and within such time as may be prescribed. (8) If— (i) the details of outward supplies, on which the tax has been collected as notified under sub-section (1), furnished by the operator under sub-section (4) do not match with the outward supplies declared by the supplier in the return furnished under sub-section (1) of section 39; (ii) the details of outward supplies furnished by the operator under sub-section (4) are found to be unmatched with the outward supplies declared by the supplier in the return furnished under sub-section (1) of section 39, the discrepancy shall, after matching, be communicated to the operator and the supplier in such manner and within such time as may be prescribed. (9) The amount in respect of which any discrepancy is communicated under sub-section (8) and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of outward supplies furnished by the operator is more than the value of outward supplies declared by the supplier, in his return for the month succeeding the month in which the discrepancy is communicated in such manner as may be prescribed. (10) The concerned supplier, in whose hands the output tax liability is increased under sub-section (9), shall pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section 50, on the amount short paid. (11) Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this Act, requiring the operator to furnish such details relating to— (a) supplies of goods or services or both effected through such operator; or (b) stock of goods held by the suppliers making supplies through such operator in the godowns or warehouses, by whatever name called, managed by such operators and declared as additional places of business by their suppliers, as may be specified in the notice. (12) Every operator on whom a notice has been served under sub-section (11) shall furnish the required information within a period of fifteen working days of the date of service of such notice. (13) Any person who fails to furnish the information required by the notice served under sub-section (11) shall, without prejudice to any action that may be taken under section 122, be liable to a penalty which may extend to twenty-five thousand rupees. Explanation.—For the purposes of this section, the expression “concerned supplier” shall mean the supplier of goods or services or both making supplies through the operator.

On utilisation of input tax credit availed under this Act for payment of tax dues under the Integrated Goods and Services Tax Act in accordance with the provisions of sub-section (5) of section 49, the amount collected as State tax shall stand reduced by an amount equal to the credit so utilised and the State Government shall transfer an amount equal to the amount so reduced from the State tax account to the integrated tax account in such manner and within such time as may be prescribed.