28. Deduction of tax at source from the bills of supply contractors.
(1)No deduction shall be made under section 40 -(a)if the dealer is not liable to pay tax under the Act;(b)if the supplier, being a dealer registered under section 19 of the Act, produces before the deducting authority a certificate in Form C-III issued by the in charge of the circle in which he is registered.(2)A supplier, for the purpose of obtaining the certificate in Form C-III, shall apply for the same in Form A-III and the authority specified in rule 62, after verifying the particulars furnished in the application, shall issue the certificate in Form C-III.(3)The provisions of sub rules (3), (4), (5) and (6) of rule 29 shall apply mutatis mutandis in so far as they relate to deductions, deposits, returns and certificates.
