Due date for Payment of Tax

(1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed. (2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under the Act, within the time prescribed or specified therefor, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one and quarter (1.25%) percent per month for the period of delay from such prescribed or specified date for its payment. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days. (3) The Central Government or the State Government or an industrial, commercial or trading undertaking of the Central Government or of the State Government or a local authority or a statutory body or a company registered under the Companies Act, 1956 or any other person notified by the Commissioner, shall deduct from out of the amounts payable by them to a dealer in respect of works contract executed for them, an amount calculated at such rate as may be prescribed and such contractee deducting tax at source shall remit such amount in the manner prescribed: Provided that no deduction shall be made from any amounts paid as consideration to any sub-contractor if tax was already deducted by the contractee. (3-A) Notwithstanding anything contained in sub-section (3), in the case of a dealer, executing works contract for Government or Local Authority, wherever tax at the rate of five percent (5%) is added separately to the estimated value of the contract, such tax shall be collected by the contractee and remitted in the manner as may be prescribed. (3-B) Every Film Processing Laboratory by whatever name it is called shall collect tax at source at the rates as may be prescribed for this purpose, from the film producers opting for payment of tax under sub-section (8A) of section 4. (3-C) The Food Corporation of India and the Civil Supplies Corporation, Telangana Unit, shall deduct tax at source on the sale of rice effected by the rice millers to them at the rates prescribed under the relevant Schedule under the Act and remit the tax so collected to the State Government within twenty (20) days from the date of deduction in the manner as may be prescribed.

(3-D) The Distilleries and Breweries, shall collect tax at source on the sale of old empty bottles effected by the dealers to them at the rates prescribed under the relevant Schedule under the Act and remit the tax so collected to the State Government on the immediate next working day from the date of collection in the manner as may be prescribed.

(3-E) In every lease transaction, that is liable to tax under sub-section (8) and sub-section (8-B) of section 4 of the Act, the person who is a transferee or lessee and who is responsible for making payment towards lease amount to a person, who is a transferor or lessor in pursuance of lease contract shall deduct tax on the lease consideration due thereon at the rate specified in sub-section (8) or as the case may be, sub-section (8-B) of section 4 of the Act and shall remit the tax so collected to the State Government on the immediate next working day from the date of collection in the manner as may be prescribed.

(3-F) Any person or authority, notified by the Commissioner, shall deduct from out of the amounts payable by him to a dealer in respect of purchase of any goods from such dealer, an amount at the rate specified in such notification. The notified person or authority, deducting such tax at source, shall remit it in the manner as may be prescribed.

(4) Any authority or person deducting any sum in accordance with sub-section (3) or sub-section (3-A) or sub-section (3-B) or sub-section (3-C) or sub-section (3-D) or sub-section (3-E) or sub-section (3-F) shall pay within the prescribed time, the sum so deducted to the credit of the State Government. If the authority or the person does not deduct or after deducting fails to pay tax as required by this section, he shall be deemed to have not paid the tax within the time under the provisions of the Act. In such case all the provisions of the Act including the provisions relating to interest shall apply mutatis mutandis to such unpaid tax.

(5) Where a VAT dealer paid entry tax on any goods under Telangana Entry Tax on Entry of Motor Vehicles into Local Areas Act, 1996 and Telangana Tax on Entry of Goods into Local Areas Act, 2001 such amount shall be adjusted against VAT payable provided the credit for input tax is not restricted under section 13 of the Act.

(6) (a) The Deputy Commissioner, on an application, made by a VAT dealer or any other dealer, permit the payment of any tax, penalty or other amount due under the Act in such instalments within such intervals and subject to such conditions, as he may specify in the said order, having regard to the circumstances of each case;

(b) where such payment in instalments is permitted the dealer shall pay in addition to such tax, penalty, instalment or other amount, interest calculated at the rate of one and quarter (1.25%) percent per month for the amount for the period from the date specified for its payment, on the instalments so permitted.

(7) [XXX]