(1) Any person responsible for paying any sum being sale price of taxable goods to a dealer in pursuance of a contract on behalf of -
(a) any Department of the Government or Central Government;
(b) any local authority;
(c) any Corporation or a Government Company established by or under any Central or State Act; (d) any co-operative society; or
(e) any Board constituted by or under any Central or State Act.
shall apply to the prescribed authority in the prescribed manner for allotment of a Tax Deduction Number (TDN)
(2) The prescribed authority shall after scrutinizing the application allot a Tax Deduction Number (TDN) to the applicant in the manner as may be prescribed. The TDN so allotted shall be a permanent number.
(3) If the person referred to in sub-section (1) without a reasonable cause fails to obtain a Tax Deduction Number (TDN), he shall be liable to a penalty of Rs. 5,000.00
Provided that before levy of penalty an opportunity of being heard shall be afforded to such person;
Provided further that no order of penalty shall be passed after the expiry of two years from the close of the financial year in which the penalty proceedings were initiated;
Provided also that a fresh order of penalty in pursuance of an order under section 11, section 11-A or section 12 of the Act shall be passed within two years after the close of the financial year in which order under section 11, section 11-A or section 12 of the Act is passed;
(4) The person referred to in sub-section (1) shall at the time of the credit of sale price of taxable goods to the account of the dealer deduct tax at the appropriate rate in cash by issue of cheque or draft or any other mode as may be prescribed.
(5) In case of works contract, the agencies referred to in sub-section (1) shall furnish copy of the works contract executed with the contractor to the prescribed authority.
(6) The tax deducted under sub-section (4) shall be deposited in the treasury within fifteen days of the deduction in the prescribed manner.
(7) The person who deducts the tax under sub-section (4) shall issue a certificate in the prescribed form in duplicate to the dealer who shall attach one copy of the same for his quarterly or annual return, as the case may be, or in case the certificate is not received before filing such return shall furnish it within such time as may be allowed by the assessing authority.
(8) The person responsible for deducting tax under sub-section (4) shall file a return in such form and in such manner, as may be prescribed, to the prescribed authority within one month of the expiry of each quarter of the financial year.
Provided that if the said person discovers any omission or other error in any return filed by him, he may furnish a revised return at any time before the period prescribed for furnishing of the next return.
(9) if the person referred to in sub-section (4) without reasonable cause fails to file the return/revised return or files it late, he shall be liable to a penalty of rupees one thousand per month per return subject to a maximum of rupees five thousand per return.
(10) Any deductions made under sub-section (4) and paid to the Government shall be treated as payment of tax on behalf of the dealer from whose payment it was deducted and credit shall be given to him for the sum so deducted on the production of the certificate furnished under sub-section (7) in the assessment for the year during which the sales were made.
(11) if the person referred to above in sub-section (4) after deduction fails to pay the tax, as is required under sub-section (6), he shall without prejudice to any other consequences which he may incur, be liable to pay a sum by way of penalty, equal to double the amount of tax that was deducted and all the provisions of the Act shall, in so far as may be applicable, apply to the recovery of such sum;
Provided that before levy of penalty he shall be given a reasonable opportunity of being heard.
(12) if any person without reasonable cause fails to deduct the tax as required by sub-section (4), he shall pay by way of penalty a sum equivalent to double the amount of tax that was deductible.
Provided that before levy of penalty he shall be given a reasonable opportunity of being heard;
(13) if any dealer is not liable to pay tax under the provisions of the Act, he may obtain a certificate in the prescribed form from the assessing authority having the jurisdiction over his place of business to the effect that no deduction of tax may be made from the payment due to him and the person responsible for making payment shall on production of such certificate by the dealer make payment without deducting any tax.
(14) if any dealer has paid the tax under the Act for the goods referred to under section (4) before receipt of the sale price of such goods from the persons it is receivable by the dealer, he may obtain a certificate in the prescribed form from the Assessing Authority having jurisdiction over his place of business to the effect that no deduction of tax may be made from the payment due to him and the person responsible for making shall on production of.-
(i) such certificate by the dealer;
(ii) the proof of having deposited the tax in respect of such transaction.
make payment without deducting any tax
(15) if any person without any reasonable cause fails to submit copy of the work contract to the prescribed authority of the area concerned as required under sub-section (5), he shall be liable to pay by way of penalty an amount of Rs. 5000/- per contract;
Provided that before levy of such penalty he shall be afforded a reasonable opportunity of being heard.
Explanation.- For purpose of this section, prescribed authority means the Assessing Authority assigned jurisdiction specifically in this behalf.