Section 67(1) in The Rajasthan Sales Tax Act, 1994
(1)Where an awarder of a works contract fails to deduct the amount in lieu of tax from the bill of a contractor as prescribed, or after having deducted such amount from such bill does not deposit the same in the prescribed manner and time, he shall be liable to pay tax deducted by him and a penalty for each violation, which may extend upto Rs. 1000/- in the cased of non-deduction, and a penalty at the rate of two percent per month on the amount so deducted but not deposited, for the period during which such default continues.
