Tax clearance certificate

Notwithstanding any other law to the contrary, a Government Department or any authority under the Government shall before–– (a) sanctioning a contract for the supply of goods or executing any other contract ; (b) issuing any registration certificate, permit or licence ; (c) granting loan (with or without interest), subsidy or the like ; or (d) issuing annual fitness certificate of passenger bus, truck or other carrier of goods ; to a person liable to tax under the Act, require such a person to produce a tax clearance certificate issued in the prescribed form by the Assessing Authority.