Section 40 in The Rajasthan Value Added Tax Rules, 2006
40. [ Procedure for deduction of an amount in lieu of tax in case of works contract. [Substituted by Notification No. S.O. 31, dated 14.7.2014 (w.e.f. 31.3.2006).]
(1)Where the awarder is a Department of any Government, a corporation, a public undertaking, a cooperative society, a local body, a statutory body, an autonomous body, a trust or a private or public limited company, limited liability partnership, and the gross amount of works contract(s) awarded by him in a year exceeds rupees ten lacs, such awarder shall obtain Awarder Identification Certificate by submitting an application in Form VAT-40 electronically through the official website of the department to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner, within thirty days from the day on which the gross amount of works contract(s) exceeds rupees ten lacs.(2)The officer authorized by the Commissioner under sub-rule (1), on receipt of the application shall issue him a Awarder Identification Certificate in Form VAT-40A duly digitally signed by him within 24 hours of the receipt of such application, and shall forward Awarder Identification Certificate to the awarder electronically on the email address as provided in Form VAT-40.(3)Where the Awarder Identification Certificate issued to any awarder is lost or misplaced or accidentally destroyed, he may obtain a duplicate copy thereof, by submitting an application in Form VAT-40B electronically through the official web-site of the department to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner.(4)Every awarder who holds a Awarder Identification Certificate, within thirty days of occurrence of such change or event as mentioned in sub-section (2) or (3) of section 16 of the Act, shall submit an application in Form VAT-40B electronically through the official web-site of the department, to any officer not below the rank of an Assistant Commercial Taws Officer, as may be authorized by the Commissioner. The officer authorised, shall after due enquiry, amend the Awarder Identification Certificate within thirty days of receipt of such application and where such application is not disposed of within the said period, the same shall be deemed to have been accepted. The officer authorised shall forward the amended certificate of Tax Deduction to the awarder electronically on the email address as provided in Form VAT-40B.(5)Where the activity of awarding the works contract of any awarder who holds a Awarder Identification Certificate discontinued permanently, such shall within thirty days of occurrence of such event submit an application in Form VAT-40B electronically through the official web-site of the department, to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner. The officer authorised shall after due enquiry cancel the Awarder Identification Certificate.(6)Every awarder holding a Awarder Identification Certificate and is responsible for payment of any sum to a contractor for execution of any works contract, shall at the time of credit of such sum to the account of the contractor or at the time of making such payment by any mode, deduct an amount as may be notified by the State Government in lieu of tax, and shall issue a certificate of deduction of tax to the contractor in Form VAT-41, within twenty one days of the close of the relevant quarter. However, where the contractor has deposited the amount to be deducted by such awarder, electronically through e-GRAS in to the Government exchequer, and submits the proof of such deposit to the awarder, on being satisfied the awarder shall not deduct such amount in lieu of tax. A deduction made under this sub-section shall be adjusted against the tax liability created at the time of the assessment of the contractor.(7)Where the contractor is not liable to pay tax under the Act on the works contract, he may obtain a No Tax Deduction Certificate by submitting an application in Form VAT-40C electronically through the official web-site of the department to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner. The officer authorised on being satisfied shall grant him the No Tax Deduction Certificate in Form VAT-40D, within fifteen days of the receipt of such application, and shall forward to the contractor electronically on the email address as provided in Form VAT-40C. No amount shall be deducted by the awarder where the contractor submits him No Tax Deduction Certificate in Form VAT-40D, duly issued by the department.(8)Every awarder holding a Awarder Identification Certificate shall deposit the amount deducted by him in the manner as provided in Rule 39 of these rules, within fifteen days of the close of the month of such deduction, and shall submit a statement mentioning the particulars of the works contract(s) and deduction of amount in lieu of tax to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner, in Form VAT-40E electronically within thirty days of the end of quarter. Where the awarder fails to furnish the statement as mentioned above, any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner, after affording a reasonable opportunity of being heard, may impose penalty under section 64 of the Act.(9)Where the amount is not deducted as prescribed in sub-rule (8), the awarder shall be liable to penalty as provided for in the Act. In such cases the contractor shall be liable to pay the said amount together with interest at the rate provided for in the Act from the date of the receipt of the payment in any form by him.(10)Where the amount is not deductible from the amount of payment made to a contractor under these rules or under orders of a court, the contractor shall deposit such amount like any other dealer in accordance with the notification issued under section 20.(11)For obtaining Forms VAT-41 the awarder shall submit an initial application to his assessing authority, electronically through the Official Website of the Department in the manner as provided therein.(12)On receipt of such application, any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorised by the Commissioner, subject lo compliance of notice issued under sub-section (2) of section 91 of the Act, if any, shall grant permission to the dealer to generate declaration Form VAT-41 electronically through the Official Website of the Department, and intimation of such permission shall be communicated to the awarder, through the Official Website of the Department.(13)After grant of permission for generation of Form VAT-41, the awarder shall submit a subsequent application for generation of declaration Form VAT-41 through the Official Website of the Department in the manner as provided therein.(14)After submission of application as provided in sub-rule (13), the system shall generate duly filled in Form VAT-41, subject to the provisions of sub-rule (15).(15)The system shall not generate declaration Form VAT-41, after the grant of permission under sub-rule (12) for generation of declaration Form VAT-41 electronically, where the awarder fails to deposit the amount deducted by him in to the Government exchequer or fails to submit statement in Form VAT 40E.(16)Where any awarder, after generation of Form VAT-41 discovers that he has filled incorrect particulars or any other information at t he time of generating the form mentioned above, and intends to rectify the same, he shall submit an application to any officer not below the rank of an Assistant Commercial Taxes Officer, as may lie authorized by the Commissioner, within ninety days of the generation of such form, mentioning therein the incorrect particulars or any other information furnished by him which he wants to rectify and the correct particulars or any other information in respect thereof. The officer authorised on receipt of such application, on being satisfied shall cancel such form in the system through the computer network and allow the awarder to generate the Form afresh.]
