In exercise of the powers conferred by sub section (2) of section 20 of the Rajasthan Value Added Tax Act, 2003 (Act No.4 of 2003), read with sub-rule (2) of rule 40 of the Rajasthan Value Added Tax Rules, 2006, State Government hereby notifies that the awarder or any person authorised by him, at the time of credit of any sum to the account of the cotractor or at the time of making such payment by any sum to the account of the contractor or at the time of makiing such payment by any mode, for carrying out any work, shall deduct, in lieu of tax, an amount equal to 3% of such sum:

Provided that in case of contractors having exemption certificate under notification No.F.12(63) FD/Tax/2005-80 dated 11.8.2006, the awarder or any person authorised by him shall deduct in lieu of tax an amount equal to rate of exemption fee as mentioned in the said exemption certificate.