Section 106 in Meghalaya Value Added Tax Act, 2003
106. Special provisions relating to deduction of tax at source.
- Notwithstanding anything contained in any other provisions of this Act-(1)Every person (excluding an individual, Hindu undivided family, a firm or a company not under the control of the Government) responsible for making any payment or discharging any liability on account of any amount payable for the transfer of property in goods (whether as goods or in some other form) involved in a work contract for the transfer of the right to use any goods for any purpose, or.(2)Every person responsible for paying sale price or consultation or any amount purporting to be the full or part payment of sale price or consideration in respect of any sale or supply of goods liable to tax under this Act to the Government or to a company, corporation, board, authority. Undertaking or any other body by whatever name called, owned, financed or controlled wholly or substantially by the Government shall at the time of credit to the account of or payment to the payee of such amount in cash, by cheque, by adjustment or in any other manner whatsoever, deduct tax there from in the prescribed manner at the rate specified in the Schedule to the Act in respect of sale or supply of goods or transfer of the right to use any goods and at the rate of four percentum of such sum being paid in respect of works contracts:Provided that no deduction shall be made under this sub-section where the amount paid or credited by such person in any financial year does not exceed the prescribed amount.(3)Any tax deducted under sub-section (1) shall be paid to the account of the State Government in such manner and within such time as may be prescribed.(4)The person making any deduction of tax under sub-section (1) and paying it to the account of the State Government shall issue a certificate of tax deduction to the payee in such manner, in such from and within such time as may be prescribed.(5)Any tax deducted under sub-section (1) and paid to the account of the State Government shall, on production of the certificate of tax deduction under sub-section (3) by the payee be deemed to be tax paid by the payee for the relevant period and shall be given credit in his assessment accordingly.(6)No interest or penalty shall be imposed or no recovery proceedings against the dealers/payee shall be initiated in respect of tax deducted under sub-section(1);Provided that the recovery proceeding under sub-section (2) of Section 41 against the person concerned who has deducted the tax but not deposited into Government Treasury shall be drawn up by the Assessing Officer under whose jurisdiction the office of the person falls with prior approval of the Commissioner.
