Special provisions relating to deduction of tax at source in certain cases

(1) The State Government may having regard to the effective recovery of tax, require any person including company/firm, call centre, institution or organization, who has contracted any bus having seating capacity of more than twelve persons excluding the driver, for the purpose of carrying their employees/persons in or through the State of Haryana, to deduct the amount of tax payable under this Act by the owner of the bus in respect of the contract operations, from the payment, whether by cash, adjustment, (1) Any person responsible for paying any sum to the owner of a motor vehicle or his agent by way of consideration for carrying passengers or goods by such vehicle, shall, at the time of credit of such sum to the account of the owner or at the time of payment of such sum in cash or by issue of a cheque or draft or in any other manner, deduct an amount, as may be prescribed, as tax. The State Government may further require such person to keep such accounts and submit such returns at such intervals as may be prescribed to the prescribed authority. (2) Any tax deducted under sub-section (1) shall be paid to the State Government in such manner and within such time as may be prescribed. (3) The person making any deduction of tax under sub-section (1) and paying to the State Government shall issue a certificate of tax deduction to the owner in such form as may be prescribed. (4) Any tax deducted under sub-section (1) and paid to the State Government shall, on production of the certificate of tax deduction issued under sub-section (3) by the owner, be deemed to be tax paid by the owner for the relevant period and shall be given credit in his assessment accordingly. (5) If any person contravenes the provisions of sub-section (1) or sub-section (2) or sub-section (3), the prescribed authority may, by an order in writing, direct such person to pay, in addition to the sum deducted, if any, a penalty not exceeding the amount of tax deductible under sub-section (1) : Provided that no such penalty shall be imposed on any person unless he has been given an opportunity of being heard. (6) The tax deducted by a person under sub-section (1), remaining unpaid after the due date of payment, shall be recoverable from him as arrears of land revenue.