30. Deduction of tax at source in works contract.-

(1) Any person responsible for making payment of any sum to any dealer as a consideration for the sale or supply of any goods in pursuance of a works contract between such dealer and the Central Government or a Government of any States or Union territories (including the National Capital Territory) or any other person or class of persons shall, before crediting such sum to the account of the dealer or before payment thereof, deduct an amount of tax as applicable to the goods as provided under section 15.

(2) Whenever any person making any deduction as provided in sub-rule (1) shall deposit the sum so deducted to the assessing authority having jurisdiction over the person with a statement in Form - R.

(3) A certificate that the dealer has no liability to pay or has paid the tax under section 15 shall be in Form - S.

(4) On or before 15th of the month succeeding to the month of deduction, the person deducting tax as provided in sub-rule (1) shall pay the amount so deducted to the concerned assessing authority, along with a certificate of deduction in Form-T. Also, issue copy of foils of such certificate in original and duplicate to the dealer from whom the tax has been deducted.

(5) A dealer of a works contract may adjust the tax so deducted against the tax payable by him as per his tax return to the extent for which he has obtained the certificate of tax deduction as prescribed in sub-rule (3) and shall attach a copy of such certificate with his tax return.

(6) A person making the payment of tax by deduction as provided in this rule, shall be deemed to have made the payment on the authority and on behalf of the dealer and shall constitute a good and sufficient discharge of the liability of the dealer to pay tax in respect of such transaction.