Vidhi Codex

section 7

Deduction of Tax At Source

The Delhi Sales, Tax on Works Contract Act, 1999
Civil199918 sections
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Statutory text
  1. (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 S py a comractar front the payments madee his sub-actor 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.
  2. (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 4 tion befure the expiry of fifteen days following, the h which such deduction is made jn the manner as th in wl , be prescribed.
  3. (5) The person making such deduction under sub-fon (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.
  4. (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.
  5. (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.
  6. (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,
  7. (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.

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