Section 31(1) in The Maharashtra Value Added Tax Act, 2002
(1)(a)Subject to the provisions contained in clause (b), the Commissioner may, by a notification in the Official Gazette, subject to such conditions and restrictions as may be specified in the notification, require any dealer or person or class of dealers or persons (hereinafter in this section referred to as "the employer") to deduct the tax or such amount of tax as may be specified in the notification, payable on the purchases other than the purchases to which section 8 applies, effected by them in the period or periods specified in the said notification.Explanation. - For the purposes of this section, the tax payable on purchases shall mean the sum collected separately from the said employer by way of sales tax by the supplier on the corresponding supplies effected by him in the said period or periods and the deduction is to be made from the sums payable to the supplier on account of the said supply.(b)(i)The Commissioner may by a like [Notification] [Notification for Employer for the purpose of deduction of tax at source in respect of Works Contracts, dated 29th August, 2005.] require any class of employers to deduct tax or such amount of tax as may be specified from and out of the amount payable [upto the 31st December 2018] [Inserted by Maharashtra Act No. 26 of 2018, dated 31.3.2018.] [(excluding the amount, if any, separately charged as tax or service tax levied by the Government of India, by the contractor)] [These words were substituted for the words '(excluding the amount of tax, if any, separately charged by the contractor)' by Maharashtra 32 of 2006, Section 46(a)(i), (w.e.f. 20-6-2003).] by such employer to a dealer to whom a works contract has been awarded, towards execution of the said works contract:Provided that, the quantum of such deduction shall not exceed the quantum of tax payable towards such works contract:Provided further that, no deduction shall be made from any payment made to any sub-contractor by a principal contractor where the principal contractor has assigned the execution of any works contract, in whole or in part, to the said sub-contractor:Provided also that, no deduction as provided under this clause shall be made in respect of any sale or purchase to which section 8 applies.Explanation.- Where any payment in the nature of an advance payment, towards the execution of a works contract is made by an employer to a dealer and such amount is adjustable against the total contract value payable to the said dealer, then, for the purposes of this clause, the advance payment shall be deemed to be the amount paid towards the execution of the works contract only as and, when such advance payment is adjusted, in part or otherwise, against the total amount payable towards the works contract.(ii)[ Where on an application being made by any contractor in this behalf, the Commissioner is satisfied that the contract under reference is not a works contract and therefore justifies no deduction at all, he shall grant him such certificate: [[Sub-clause (ii) substituted by Maharashtra 32 of 2006, Section 46(a)(ii), (w.e.f. 20-6-2006). Prior to its substitution read as under:(ii)Where on an application being made by any contractor in this behalf, the Commissioner is satisfied that the contract under reference is separable and involves both a works contract and labour or is not a works contract and therefore justifies deduction of tax only as a part of the sum payable in respect of any works contract or, as the case may be, justifies no deduction at all, he shall grant him such certificate as may be appropriate:Provided that, the Commissioner may reject such application, or on his own motion, cancel or modify such certificate, after giving the contractor a reasonable opportunity of being heard:Provided further that, nothing in the said certificate shall affect the tax liability of the contractor.]]Provided that, the Commissioner may, after giving the contractor a reasonable opportunity of being heard, reject such application or cancel or modify such certificate:Provided further that, nothing in the said certificate shall affect the tax liability of the contractor.] [Added by Maharashtra Act No. 31 of 2017, dated 15.4.2017.](iii)Where such certificate is produced by the contractor, before the employer, the employer shall, unless the certificate is cancelled or modified by the Commissioner, make deduction of tax in accordance with the said certificate. In the event of such certificate being cancelled or modified as provided, the employer shall make the deductions accordingly.
