Section 63 in The Rajasthan Value Added Tax Act, 2003
63. Penalty on awarders.
(1)Where an awarder of a works contract, fails to deduct the amount in lieu of tax from the bill of a contractor as prescribed, or after having deducted such amount from such bill does not deposit the same in the prescribed manner and time, he shall be liable to pay tax deducted by him and a penalty for each violation, [which may extend upto rupees one thousand in the case of non-deduction, and a penalty at the rate of two per cent per month on the amount so deducted] [[Substituted by Rajasthan Act 4 of 2006, Published in Rajasthan Government Gazette Extraordinary, Part IV-A, dated 31-3-2006, page 61(47) [1-4-2006] for the following :-'which shall be twenty per cent of the amount of tax required to be deducted in case of non- deduction, and a penalty at the rate of three per cent per month on the amount so deducted']] but not deposited for the period during which such default continues.(2)The assessing authority of the contractor concerned or any other officer not below the rank of an Assistant Commercial Taxes Officer as may be authorised by the Commissioner, shall be empowered to recover tax and impose penalty under sub-section (1).
