Sri Suresh Chanda, IAS., Commissioner of Commercial Taxes A. P., Hyderabad

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Sub:- Tax Deduction at Source  Generation of certificates in Form 501A and Form 501B Online in the case of work contracts whose tax liabilities are not compounded  certain instructions issuance - Regarding.

Ref:- 1. CCT's Ref. No. A II(2 )/291 /2012, dt. 27.08.2012. (CC No. 20)

2. CCT's Ref. No. A II(2 )/291 /2012, dt. 17.09.2012.(CC No. 26)

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The attention of all the Deputy Commissioners of Commercial Taxes (CT) in the State is invited to the references cited, wherein certain instructions were issued on generation of certificates of Tax Deduction at Source in Form 501A with Unique ID from the Commercial Taxes Department website.

In continuation of the earlier instructions, the following further instructions are issued so as to ensure that all the amounts certified in the certificates of transfer of tax deductions at source by the contractor to the Sub-Contractor/Sub-Contractors in Form 501 B issued in respect of one certificate of tax deduction at source in Form 501 A put together do not exceed the amount indicated in the such certificate in Form 501A.

· Hence w.e.f 16-2-2013, the certificates of transfer of Tax Deduction at source in Form 501 B (Certificate of transfer of Tax Deduction at Source by Contractor to the sub-Contractor) shall be generated by the contractors through CTD website .

· Even in the cases in which certificates of TDS in Form 501 A were already obtained through CTD website, but the corresponding certificates of transfer of TDS in Form 501 B were already issued manually by the contractors, the certificates of transfers of TDS in Form 501 B should be generated through CTD website again. The corresponding certificates of transfer of TDS in Form 501 B generated manually against Form 501A (with unique ID) already should not be accepted by the assessing authorities. The contractor should be asked to submit fresh Form 501 B generated through system.

These instructions are being issued to ensure through the electronic system itself that all the consequential certificates of transfer of TDS in Form 501 B in respect of a single certificate of TDS in Form 501 A put together should not exceed the amount certified to have been transferred in the relevant Form 501 A .

The Deputy Commissioners of Commercial Taxes should bring these instructions to the notice of all the contractor dealers and their sub-ordinate officers .

Sd/ Suresh Chanda

Commissioner of Commercial Taxes