92. Collection of tax by registered dealers, governments and statutory bodies.-

(1) Every registered dealer liable to pay tax under the Act shall collect such tax at the rates at which he is liable to pay tax under the provision of the Act;

(2) The Central Government, State Government, a statutory body or a local authority shall in respect of any sale of taxable goods effected by them be entitled to collect by way of tax any amount which a registered dealer effecting such sale would have been entitled to collect by way of tax under this Act and shall pay the tax so collected into the Government Treasury.

(3) Deduction at source from payment to a dealer against execution of Works contract- Notwithstanding anything contained in sub-section (5) of Section 28 or any Rules made thereunder or any terms of a contract to the contrary, any person responsible for paying any sum to any dealer for execution of a Works contract referred to in Section 8 wholly or partly in pursuance of a contract between such dealer and -

(a) Government,

(b) A local authority,

(c) A Corporation or a body established by or under any law for the time being enforce,

(d) A company incorporated under the Companies Act, 1956 including a Government undertaking,

(e) A cooperative Society registered or deemed to be registered under the Co-operative Societies Act, or

(f) An educational institution,

Shall, at the time of payment of such sum in cash or by issue of a cheque or draft or any other mode of payment, deduct an amount towards tax equal to four per centum of such sum being paid in respect of such Works contract.

(4) Where deduction of an amount is made under sub-section (3) the person making such deduction shall deposit the amount so deducted into a Government Treasury within such time, in such manner and in such form or challan as may be prescribed.

(5) After the deposit of the amount under sub-section (4), the person who makes the deduction and deposit, shall, within fifteen days from the date of such deposit issue to the dealer a certificate in the prescribed form for each deduction and send a copy of the receipted challan or a copy of the account statement referred to in sub-section (2), as the case may be, to the Commissioner along with the relevant certificate of deduction and such documents a may be prescribed.

(6) On receipt of a certificate of deduction referred to in sub-section (5), the deposit of an amount of a dealer referred to in sub-section (4) shall be adjusted by the Commissioner towards tax liability of the dealer in his return under Section 28 and shall constitute a good and sufficient discharge of the liability of the person deducting such amount to the dealer to the extent of the amount deducted and deposited.

(7) Where any person, while paying any sum to a dealer, contravenes the provisions of sub-section (3), sub-section (4) or sub-section (5), he shall be personally liable for such contravention, and the Commissioner may after giving him an opportunity of being heard, by an order in writing may imposed on such person a penalty, not exceeding twice the amount required to be deducted.

(8) Where the dealer from whose account any amount has been deducted under sub-section (3) and deposited under sub-section (4) proves to the satisfaction of the Commissioner that he is not liable not to pay tax under Section 4 and such amount was not wholly or partly payable by him under this Act, the Commissioner shall refund or adjust the amount refundable to the dealer in such a manner as may be prescribed.