(1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed.

(2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under the Act, within the time prescribed or specified there for, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one and quarter (1.25%) percent per month for the period of delay from such prescribed or specified date for its payment. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.

(3) The Central Government or the State Government or an industrial, commercial or trading undertaking of the Central Government or of the State Government or a local authority or a statutory body or a company registered under the Companies Act, 1956 or any other person notified by the Commissioner, shall deduct from out of the amounts payable by them to a dealer in respect of works contract executed for them, an amount calculated at such rate as may be prescribed and such contractee deducting tax at source shall remit such amount in the manner prescribed:

Provided that no deduction shall be made from any amounts paid as consideration to any sub-contractor if tax was already deducted by the contractee.

(3-A) Notwithstanding any thing contained in sub-section (3), in the case of a dealer, executing works contract for Government or Local Authority, wherever tax at the rate of five percent (5%) is added separately to the estimated value of the contract, such tax shall be collected by the contractee and remitted in the manner as may be prescribed.

(3B) Any person or authority, notified by the Commissioner, shall deduct from out of the amounts payable by him to a dealer in respect of sales of any goods, as may be specified, an amount calculated at the rate as may be notified and such person or authority, deducting such tax at source, shall remit it in the manner as may be prescribed.

(4) If any authority or person fails to deduct tax at source in accordance with the sub-sections (3), (3A) or (3B) or remit the amount of tax, so deducted, within the prescribed time to the State Government, such amount of tax, not collected or not remitted, shall be recoverable from such authority or person, as if it were the tax liable to be paid by him under the Act:

Provided that all the provisions of this Act including the provisions relating to interest and penalty applicable to failure to pay tax under the Act shall apply mutatis-mutandis to the tax not deducted and remitted.

(5) Where a VAT dealer paid entry tax on any goods under Andhra Pradesh Entry Tax on entry of Motor Vehicles into Local Areas Act 1996 (Act 26 of 1996) and Andhra Pradesh Tax on Entry of goods into Local Areas Act 2001 (Act 40 of 2001), such amount shall be adjusted against VAT payable provided the credit for input tax is not restricted under Section 13 of the Act.

(6) (a) The Deputy Commissioner, on an application made by a VAT dealer or any other dealer, permit the payment of any tax, penalty or other amount due under the Act in such instalments within such intervals and subject to such conditions, as he may specify in the said order, having regard to the circumstances of the each case;

(b) Where such payment in instalments is permitted, the dealer shall pay in addition to such tax, penalty, instalment or other amount, interest calculated at the rate of one and quarter (1.25%) percent per month for the amount for the period from the date specified for its payment on the instalments so permitted.

(7) Omitted.