Dy. Commissioners (Adm.) / (Anti-Evasion)

Commercial Taxes,

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Sub: Regarding amendment of Section 20 of RVAT Act, 2003.

As you are aware that a new sub-section (2A) has been introduced in section 20 of the Rajasthan Value Added Tax Act, 2003, which empowers the Government Department /Public Sector Undertaking / Corporation / Company owned or controlled by State Government / Cooperative Societies / Municipalities / Panchaytiraj Institutions at District and Block level / Local Authority / Statutory Bodies to deduct tax payable by the selling dealer on the purchases made by them. To give effect to the provisions of the Act, a new Rule 40A has also been incorporated in the Rajasthan Value Added tax Rules, 2006.

In order to ensure the compliance of said provisions by Government Department / Public Sector Undertaking / Corporation/ Company owned or controlled by State Government / Cooperative Societies / Municipalities / Panchaytiraj Institutions at District and Block level / Local Authority / Statutory Bodies, Principal Secretary Finance has issued a circular No. F.1.(1)FD/GF&AR/2007 dated 21.04.2010. Enclosed herewith find the copy of the said circular, you are hereby directed to circulate this circular among all the Assessing Authorities, concerned Department /Institution and the Trade & Industries Associations of your Zone so that proper IEC of the said circular could be made.

You are further directed to ensure that the tax deducted at source by the said Department / Institution would be deposited into the Government Exchequer within stipulated period.

Work shop / Seminars of the stake holders could also be organized to ensure the proper IEC in this regard.

(Nirnajan Arya)

Commissioner,

Commercial tAxes,

Rajasthan, Jaipur.