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The Jammu and Kashmir General Sales Tax Act, 1962
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16-D. Clearance certificate in relation to taxable goods

Any person being,-

    (a) Department of the Government or Central Government;

    (b) a local authority;

    (c) corporation established by or under Central or State Act;

    (d) a Co-operative Society; or

    (e) a Board constituted by or under Central or State Act;

shall before entertaining a tender for supply of taxable goods or sanctioning any contract, require the supplier or contractor to furnish the sales tax clearance certificate in a prescribed form issued by the assessing authority in such manner as may be prescribed.