44. Procedure for collection of tax on contract basis.

Whenever the State Government directs the Commissioner to collect tax in the State on contract basis for a particular Check-post or for specified area under section 77, the following procedure shall be adopted.-

(a) The Commissioner, to the best of his judgment, shall determine the amount of estimated annual tax revenue for a particular check-post or for a specified area. However, in the event of any special circumstances the Commissioner, after recording reasons for doing so, may revise such estimated annual tax revenue. The determination of estimated annual tax revenue by the Commissioner under this clause shall be final.

(b) After determination of the estimated annual tax revenue, the Commissioner may direct an officer not below the rank of Commercial Taxes Officer to invite tender for the collection charges as a percentage of the estimated annual tax revenue in respect of the tax to be collected for a particular check-post or for a specified area.

(c) On receipt of the directions under clause (b), the authorized officer shall invite tenders for collection charges as a percentage of estimated annual tax revenue for the check-post or the specified area. The procedure for awarding of the contract including contents of tender documents, amount of security deposit, earnest money and the like, shall be such as may be specified by the Commissioner from time to time.

(d) The Officer authorized under clause (b) may recommend the name of the bidder, who has offered for the lowest collection charges, to the Commissioner for authorisation to collect tax at a particular checkpost or for the specified area.

(e) On receipt of the recommendation under clause (d), the Commissioner, if satisfied, may authorise such contractor to collect tax in respect of the specified goods and / or livestock at a particular check-post or for the specified area.

(f) The contractor authorized by the Commissioner under clause (e) shall be required to enter into a contract with the officer authorized by the Commissioner before starting collection of tax.

(g) The contractor shall collect the tax in accordance with the contract, at the rate notified under the Act, and the tax so collected shall be deposited in accordance with clause (i).

(h) The contractor shall collect tax or any amount in lieu of tax, if any and shall issue receipt in Form VAT-39, obtained from the office of the Assistant Commissioner or the Commercial Taxes Officer of the area or the officer authorized by the Commissioner. The receipt in Form VAT-39 shall be issued in triplicate with the use of double faced carbon in a manner that the duplicate and triplicate copies shall be the carbon copies of the original and the contractor shall also ensure that the back leaf of the original and duplicate copies shall have the mirror impression of the original. The original copy of the receipt shall be issued to the person from whom such money is collected. Duplicate copy of the receipt shall be sent by the contractor to the Assistant Commissioner or the Commercial Taxes Officer of the area or the officer authorized by the Commissioner and the triplicate copy shall be retained by the contractor.

(i) The contractor shall deposit the entire collected tax or the 1/52nd part of the estimated annual tax revenue, whichever is higher, on every Monday in the State treasury or the banks authorized for the purpose through a challan in Form VAT-37 and in the event Monday being holiday, such amount shall be deposited on the immediately following working day. On completion of the contract period, if it is found that the amount deposited by the contractor is more than estimated annual tax revenue as well as the actual tax collected by him, such excess deposit amount shall be refunded to the contractor.

(j) The contractor shall maintain a complete and true account of the tax collected and deposited by him and shall furnish the complete details of the tax collected and deposited in Form VAT-44 to the Assistant Commissioner or the Commercial Taxes Officer of the area or the officer authorized by the Commissioner to execute contract, and shall submit the used completed books within ten days of the end of the relevant month. On completion or cancellation of the contract, the contractor shall return the used as well as unused receipt books issued to him immediately or within such time not exceeding seven days, as may be allowed by the Assistant Commissioner or Commercial Taxes Officer of the area or the officer authorized by the Commissioner. If the contractor fails to comply with such directions, the Assistant Commissioner or Commercial Taxes Officer of the area or the officer authorized by the Commissioner, shall determine the tax of such receipts to the best of his judgement and shall be recoverable as demand under the Act.

(k) The collection charges to the contractor as per the contract shall be paid within thirty days of the submission of the monthly statement in accordance with clause (j), as percentage of the estimated annual tax revenue or the entire tax collected and deposited, whichever is higher, subject to the final adjustment at the end of the contract period.

(l) The contractor shall be bound by the provisions of the Act, these rules, the terms and conditions of the contract and the instructions issued by the Commissioner from time to time. In case of any violation thereof, the contract shall be liable to be cancelled by the Commissioner after affording opportunity of being heard to the contractor in this behalf.

(m) In case of any dispute regarding the contract, the contractor may submit such dispute to the Commissioner, whose decision in the matter shall be final.

(n) Notwithstanding anything contained in rule 39, the registered dealer shall deposit the amount of tax to a contractor in respect of goods and in the area where the Commissioner has permitted such contractor to collect tax from such registered dealers under section 77 of the Act, and the contractor shall issue original receipt in Form VAT 39 obtained from the office of the Assistant Commissioner or the Commercial Taxes Officer of the area or the officer authorized by the Commissioner, to the registered dealer.