(1) Where a deduction of an amount towards payment of tax in respect of any works contract or supplies is made at source by a Government, authority or person under sub-section (3) of section 92 of the Act from any dealer, the person making such deduction for such Government, authority or for himself shall, within ten days from the expiry of each calendar month, deposit through challan into a Government Treasury or designated Bank the total amount so deducted from one or more dealers or contractors during the preceding month.

(2) The challan shall specify the name, designation and address of the person making deposit of the amount referred to in sub-rule (1) and mention therein the department of the Government or the authority or the person on whose behalf such deposit is made.

(3) Notwithstanding anything contained in sub-rule (1) and sub-rule (2), where deduction of any amount towards tax is made and the person making such deductions adopts "Public Works system of accounting", such person shall, within ten days from the expiry of the calendar month during which such deduction is made, incorporate the sum so deducted in the "monthly divisional account statement" and send the said statement to the Accountant General, Nagaland, for transfer of the sum to the account under the head of account 0040-Sales Tax, and after such transfer, it shall be deemed to have been deposited under sub-section (3) of section 92 of the Act.

(4) On transferring the deposit of the amount referred to in sub-rule (3), a copy of the "monthly divisional account statement" showing the total amount of tax deducted during such month as referred to in the said sub-rule shall be sent to the Commissioner within 45 days from the date immediately following the date of expiry of the calendar month during which deduction is made, and the other copy shall be retained by the person who deposits such amount.

(5) Issue of Certificate of Deduction of the amount towards payment of tax on Works Contract and Supplies:- The person who deducts and deposits any amount towards payment of tax in respect of works contract and supplies under sub-rule (1) or (3) shall, within 15 days from the date of deposit, issue a certificate of deduction in Form VAT-32 in respect of such dealer.

(6) Scroll for deposit or transfer of the amount deducted at source to be sent to the Commissioner.- The person who deducts the amount towards payment of tax in respect of works contract or supplies under sub-section (3) of section 92 of the Act and deposits such amount under sub-rule (1) or transfers such amount under sub-rule (3) as the case may be, shall, within 45 days from the date immediately following the date of expiry of the calendar month during which such deduction is made, send to the Commissioner -

(a) a scroll in Form VAT-33 in respect of the amount specifying therein, inter alia, the amount deducted and deposited under sub-rules (1) or (3), as the case may be, from each dealer or contractors during such month, the name and address of each dealer or contractor from whose payment such amount has been deducted, the number of the Certificate of Registration under the Act of such dealer or contractor, and the serial number and date of the certificate of deduction issued to each dealer.

(b) a copy of certificate of deduction issued to each dealer, and

(c) a copy of the receipted challan evidencing payment of the amount deposited during each month into the Government Treasury or designated Bank, or a copy of the monthly divisional account statement referred to in sub-rule (4).

(7) Grant of certificate of deduction of tax at source or no deduction of tax. -

(a) An application for grant of certificate of deduction of tax at source for a lower amount or an application for no deduction of lax under clause (ii) of sub- section (3) of section 92 shall be made by the contractor in Form VAT-38 to the Prescribed Authority having jurisdiction over the dealer.

(b) The application shall be accompanied by copies of the contract and other documents on the basis of which the claim is made for deduction of tax at source for a lower amount or for no deduction of tax, as the case may be.

(c) If the Prescribed Authority, after making such enquiry as may be deemed necessary, is satisfied that the particulars and documents furnished by the dealer are correct and complete in all respects, he shall, after giving the applicant reasonable opportunity of being heard, grant a certificate in Form VAT-39 within a period of one month from the date of receipt of the application and shall forward a copy of such certificate to the contractee for whom the work is executed. If it comes to the notice of the Prescribed Authority that the certificate is wrongly granted or is not in order, then he may on his own motion, cancel or modify such certificate, after giving the dealer a reasonable opportunity of being heard.

(8) Information to be given to the Prescribed Authority in ease of execution of works Contract-

The information to be furnished to the Prescribed Authority by any person entering into any contract with any contractor for transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, shall be in Form VAT-40.

(9) No deduction of tax or a deduction of tax of a lower amount under sub-section (3) of section 92 shall be made in case of supply of goods where such sale is certified by the Prescribed Authority as being not liable to tax or liable to tax at a lower amount. Such certificate shall invariable be embodied in each bill to be presented for payment.

(10) Tax deduction account number. -

(a) Every person responsible for making deduction of tax under section (3) of section 92 shall apply to the Prescribed Authority for allotment of a Sales Tax deduction Account Number in Form VAT-41 within thirty days time from the date of commencement of these rules, if he was so responsible on such date and within fifteen days time from the date of entering into any contract relating to supply of goods or execution of works contract, or for transfer of the right to use any goods, if he becomes responsible for such deductions after the date of commencement of such rule.

(b) A Tax Deduction Account Number shall be issued in Form VAT-42.

(c) Every person responsible for issuing certificate in Form VAT-33 shall maintain for each year separate account in Form VAT-43 showing the amount of tax deducted, certificate of tax deduction issued, and the particulars of remittances made against such deduction.