Chapter III Chapter III

Tax Clearance Certificate and Accounts

Tax Clearance Certificate.—(1) Notwithstanding anything contained in any other law for the time being in force, no 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:—

1. (i) has no liability to pay tax, interest, penalty or any amount due or has not defaulted in furnishing any return or returns together with the receipted challan or challans showing payment of all tax payable under this Act;
2. (ii) has not defaulted in making payment of tax otherwise payable by or due from him under this Act;
3. (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;

1. (2) Notwithstanding anything contained in sub-section (1), the Commissioner may, after making such enquiry as he may think fit and after affording an opportunity of being heard, certify in the prescribed form, the payment may, not-withstanding anything contained in sub-section (1), be made to such dealer for execution of a works contract, provided that he has applied for registration within the prescribed time.

Registration of dealers.—(1) No dealer who is liable to pay tax under this Act, shall, after the commencement of this Act, execute or continue to execute a works contract, unless, he possesses a valid certificate of registration as provided by this Act: Provided that the dealer shall be eligible to be registered if he has started the business of transfer of property in goods involved in execution of works contract for first time in Delhi.

1. (2) Where on application made by a dealer in the prescribed form, the Commissioner, after making such enquiry, as he may deem fit for the purpose of the provisions of the Act and the rules, is satisfied that the dealer is eligible for registration, he shall grant him a certificate of registration in the prescribed form, which shall take effect from the date on which registration certificate took effect until it is cancelled, notwithstanding the date of the grant of such certificate of the Commissioner.
2. (3) The application for registration shall contain such particulars as may be prescribed.

Accounts.—(1) Every dealer liable to pay tax under this Act shall maintain and keep true and up-to-date accounts of the value of goods transferred, whether as goods or in some other form, in the execution of works contract, and such other accounts as may be prescribed: Provided that if the Commissioner is of the opinion that the accounts maintained by any dealer or class of dealers are not sufficient to enable him to assess the tax due from such dealer or dealers, he may require such dealer or dealers to maintain such accounts as he may direct.

1. (2) Every registered dealer shall issue a tax invoice or a bill or a cash memorandum in respect of the goods transferred in the execution of works contract by him, which shall be serially numbered and signed and dated by such dealer or his regular employee, and shall specify such other particulars as may be prescribed.
2. (3) The provisions of section 18 of the Delhi Sales Tax Act and Rules framed thereunder as regards the maintenance of accounts shall, mutatis mutandis, apply to a dealer liable to pay tax under this Act.