(1) (a) Every person who is required to deduct tax under section 47 shall, within ten days from the expiry of the month, deposit into a Designated Bank by the appropriate Challan in Form-24 the total amount of so deductible and deducted from one or more dealers during the immediately preceding month.

(b) a challan for each deposit in respect of a month shall be filled up in quadruplicate and signed by the person making such deposit.

(c) the challan shall specify the Government Department, undertaking, authority company or corporation with the name and designation of the person making deposit of the amount referred to in sub rule (1) and mention therein in clear detail the name (s), address (es) and Taxpayer Identification Number (s) of the dealer (s) on whose behalf tax (es) is/are paid.

(d) The person who deducts or deposits any amounts under sub-rule (1) shall, within seven days from the date of deposit of the amount deducted from the any payment made to a dealer, issue to the dealer concerned, a certificate of tax deducted in Form-29 in duplicate in respect of such deduction and deposit, together with attested photocopy of the challan. The dealer shall furnish one copy of the certificate and the challan copy for adjustment of such deposit against his dues to the Prescribed Authority.

(e) In a case where the Drawing and Disbursing Officers is required to submit the bill to the Government treasury, in respect of the supply of goods or execution of works contract or for lease transactions as specified in section 47, he shall enclose four copies of challans with each bill for deposit of the amount so deducted at source. No such bill shall be passed by the Government treasury unless it is accompanied by the four copies of the challan in Form-24. The Government treasury shall keep proper account of deposit of the amount by transfer.

(f) Two copies of the challan i.e. the original and the duplicate copies duly signed by the officer of the Designated Bank as proof of payment by transfer shall be returned to the tenderer and the other two copies i.e. triplicate and the quadruplicate copies shall be retained by the bank.

(g) On receipt of the signed original and duplicate copies of the challan from the Bank, the Drawing and the disbursing Officer shall retain the original copy in his office and give the duplicate copy to the concerned party who made the supply or executed the work contract or transferred the right to use any goods.

(2) Grant of Certificate of deduction of tax at source or no deduction of tax.-

(a) An application for grant of certificate of deduction of tax at source for a lower amount or the application for no deduction of tax under clause (b) of sub-section (1) of section 47 as and when a running bill for any completed portion of works contract becomes due for payment by the contractee shall be made by the contractor in Form-30 to the Prescribed Authority who is having jurisdiction over the dealer.

(b) The application shall be accompanied by copies of the contract, and other documents, on the basis of which the claim is made for deduction of tax at source for a lower amount or for no deduction of tax, as the case may be.

(c) If the particulars and documents furnished by the dealer are correct and complete in all respects and after making such enquiry as may be deemed necessary, the Prescribed Authority is satisfied that the contract involves both transfer of property in goods and labour or service, or involves only labour or service and justifies deduction of tax at source or no deduction of tax, as the case may be, he shall, after giving the applicant a reasonable opportunity of being heard, grant a certificate in Form-31 within a period of one month from the date of receipt of the application and shall forward a copy of such certificate to the contractee for whom the work is executed. If it comes to the notice of the Prescribed Authority that the certificate is wrongly granted or is not in order, then he may on his own motion cancel or modify such certificate, after giving the dealer a reasonable opportunity of being heard;

Provided that where the amount payable to the contractor as per the bill, for which such application for no deduction or deduction of tax for a lower amount is applied, is more than rupees five crore the Prescribed Authority shall take prior approval of Deputy Commissioner before issuing such certificate.

(3) Information to be given to the Prescribed Authority in case of execution of contract.- The information to be furnished to the Prescribed Authority by any person entering into any contract with any contractor for transfer of property in goods shall be in Form-32.

(4) No deduction of tax under sub-section (3) of section 47 shall be made in case of supply of goods where such sale is certified by the Prescribed Authority as being not liable to tax. Such certificate shall invariably be embodied in each bill to be presented for payment:

Provided that no such certificate for no deduction of tax at source shall be given in respect of sale or supply of goods taxable at every point of sale unless the supplier is a dealer registered under the Act having Taxpayer Identification Number and he produces a Challan showing the pre-payment of tax on such sale or supply transaction.

(5) Tax deduction account number.-

(a) Every person responsible for making deduction of tax under section 47 shall apply to the Prescribed Authority for allotment of Sales Tax Deduction Account Number in Form-33 within thirty days time from the date of commencement of these rules, if he was so responsible on such date and within fifteen days from the date of entering into any contract relating to supply of goods or execution of works contract or for transfer of right to use any goods, if he becomes responsible for such deductions after the date of commencement of such rule. A Tax Deduction Account Number shall be issued in Form-34.

(b) Every person responsible for deduction of tax shall file a return in Form-35 within two months from the end of each year before the Prescribed Authority.

(c) Every person responsible for issuing certificate in Form-29 shall maintain for each year separate account in Form-36 showing the amount of tax deducted, certificate of tax deduction issued, and the particulars of remittances made to the Government Account.

(6) No tax under Section 47 shall be deducted when the amount paid to any dealer in respect of sales transaction of the nature specified in sub-section (1), (2) or (3) of the said section does not exceed five thousand rupees in a financial year.