Section 40(6) in The Rajasthan Value Added Tax Rules, 2006
(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.
