26. Manufacturers to collect and pay tax.

(1) Notwithstanding anything contained in this Act, every manufacturer of scheduled goods who is registered under the Sales Tax Act shall in respect of sale of its finished products effected by it to a buying dealer, either directly or through an intermediary, shall collect by way of tax an amount equal to the tax payable on the value of such finished products under section 3 of this Act by the buying dealer in prescribed manner and shall pay the tax so collected into the Government Treasury :

PROVIDED that the liability of the manufacturer for payment of tax under the sub-section during a year shall be reduced to the extent of tax paid under this Act on the raw materials which directly go into the composition of the finished products during that year in the prescribed manner.

(2) Every manufacturer collecting tax under sub-section (1) shall send every month to the assessing authority of the area a statement in the prescribed form containing particulars of tax collected during the preceding month and pay the full amount of tax so collected by it, within twenty days after close of the preceding month in which such collection were made.

(3) The amount of tax collected under sub-section (1) and not paid as required under sub-section (2) shall for the purpose of section 11 be deemed to be an amount due under this Act.

(4) Every manufacturer collecting tax under sub-section (1) shall reflect the amount of tax collected under this section in the cash memo or sale invoice issued to the buyer.