Tax Clearance Certificate

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.