Section 40(1) in West Bengal Value Added Tax Act, 2003
(1)Notwithstanding anything contained in section 32 or any rules made thereunder or any terms of a contract to the contrary, any person responsible for paying any sum to any dealer for execution of a works contract referred to in section 14, wholly or partly in pursuance of a contract between such dealer and-(a)Government,(b)a local authority,(c)a corporation or a body established by or under any law for the time being in force,(d)a company incorporated under the Companies Act, 1956,(1 of 1956) , including a Government undertaking,(e)a co-operative society registered or deemed to be registered under the West Bengal Co-Co-operative Societies Act, 1983,(West Ben. Act XLV of 1983) ,(f)an educational institution, or(g)a promoter, shall, at the time of payment of such sum in cash or by issue of a cheque or draft or any other mode of payment, [deduct an amount towards tax equal to - [Substituted w.e.f. 01.08.2006 by S. 12(19) (a) of WB Act XVIII of 2006 for 'deduct an amount towards tax equal to two per centum of such sum being the in respect of such works contract:'.](i)two per centum, when such contractor is registered under the Act and such registration is valid on the date of making such payment; or(ii)four per centum, in all other cases:]:Provided that no deduction under this sub-section shall be made,-(i)where the payment is made as advance prior to the commencement of the execution of such works contract; or(ii)where no transfer of property in goods (whether as goods or in some other form) is involved in the execution of such works contract; or(iii)[ *** ] [Omitted w.e.f. 01.08.2006 by S. 12(19) (b) of WB Act XVIII of 2006 the clause ]Provided further that no deduction under the sub-section shall be made in respect of that part of payment to the dealer which represents his contractual transfer price of the goods as referred to in clause (a) of sub-section (2) of section 18, where such dealer declares in writing to that effect claiming exemption from tax.Explanation. - For the purposes of this sub-section, "promoter" means a person who constructs, reconstructs, converts, renovates or extends or causes to be constructed, reconstructed, converted, renovated or extended, a building(including a flat or apartment or a block of flats or apartments or a resort) on a plot of land for the purposes of transfer of such building by sale or otherwise to any person or to the company, form, co-co-operative society or any association of persons, and includes-(i)his assignee, if any,(ii)the person who develops orbit claims the land, the person who constructs, reconstructs, converts, renovates or extends, and the person who transfers, such building, if such persons are different,(iii)a society registered under the West Bengal Societies Registration Act,1961,(West Ben. Act XXVI of 1961.)(iv)any firm, board or other association of persons established by or under any law for the time being in force, but excluding those referred to in clauses (a) to (f) of this sub-section.
