(3)Non-deduction of tax at source or deduction of tax at lower rate following conditions shall apply.A works contractor executing works contract may make an application to the Commissioner seeking exemption from deduction of tax or deduction at lower rates by such authorities in respect of the works contracts executed, subject to the following conditions, namely:-(i)The works contractor is a registered dealer for a period of not less than 3 years;(ii)The works contractor is not in arrears of any tax or other amount due under the Act on the date of application;(iii)The works contractor is not a non-resident dealer;(iv)The application shall be made within 90 days from the date of the commencement of the works contract if he has commenced the works contract during the course of the year;(v)The works contractor proves to the satisfaction of the Commissioner, that, in respect of the works contract allotted, required tax will be deducted at source or has been deducted and deposited in the Treasury from the account of sub-contractor.(vi)The works contractor shall furnish such security as the Commissioner may demand;(vii)The exemption or reduction granted in the amount of deduction, is liable to be withdrawn forthwith, if the works contractor commits the default in filing the returns or in payment of tax payable under the Act within the time prescribed.
