Incidence and levy of cess, rate of cess and payment of cess.

(1) There shall be levied and collected a cess for the purposes of the Sikkim Earthquake Rehabilitation Management Fund, at such rate not exceeding two percent but not less than one percent of the cost of contract works, as the Staie Government may.by notification ill the Official Gazette, from time to time specify. (2)The cess ievieo under sub-section (1) shall be collected from every contractee in such mariner and at such time, including deduction at source in relation to contract works of a Government or of a public sector undertakinq or arivance collection through a local authority wilere approval of such contract works by such local authority is required, as may be prescribecJ (3)The cess leviable under sub-section (1) shall be collected in such manner and at such time as the State Government may prescribe by notification. including deduction at source from payment macle against execution of works contract by paying authority of the contractee. (4) The amount deducted as cess at source shall be deposited to the credit of the State Government within 15 (fifteen) days after expiry of month of such deductions in such form or challan or through book adjustment, as the case may be. (5) It such paying authority fails to deduct, or having deducted, fail's to remit to the State Government the amount deducted as cess, within the stipulated time the State Government may impose penalty of such amount as the state Government rnay by notification specify.