In exercise of the powers conferred by sub-section (1) of section 96 of the Nagaland Value Added Tax Act, 2005 (Nagaland Act No. 4 of 2005), the Governor of Nagaland is pleased to make the following amendments to the Nagaland Value Added Tax Rules, 2005, namely:-
In Rule 48, after sub-rule (6), the following shall be inserted, namely:-
(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.
2. In the VAT Forms, after Form VAT-37, the following forms shall be inserted, namely:-
THE NAGALAND VALUE ADDED TAX RULES, 2005
FORM VAT-38
[See Rule 48(7) (a)]
APPLICATION FOR GRANT OF A CERTIFICATE UNDER CLAUSE (ii) (a) OF SUB-SECTION (3) OF SECTION 92, FOR NO DEDUCTION OF TAX OR DEDUCTION OF TAX ON A LOWER AMOUNT.
To,
The Prescribed Authority,
..................................
I, .........................................(name of Proprietor/Partner/ Director/Manager, Secretary, Officer-in-Charge) of M/S .................. who is undertaking the activity of execution of works Contract holding a certificate of registration, bearing TIN ................................under the Nagaland Value Added Tax Act,
1. Name and full address of the contractor who has been awarded the contract:
2. Place where the Contract is to be executed: ................................
3. Period involved for completion of contract: ..................................
4 The number, date, name and description of the works contract and the date of commencement of the contract (certified true copy of contract to be filed with application):
5. Whether the contract is, -
(i) indivisible
(ii) divisible contract of supply and labour
(iii) purely of labour or service
6. Total turnover of the contract under reference.
7. Material component to be supplied by the Contractor and value thereof as per contract (in Rs.): ....................................................
8. The value of the labour and service component as per the contract (in Rs): ......................
9. Probable tax liability (in Rs.) with computation (in Rs.): .................................
10. No tax liability with reasons: ............................
I solemnly declare that the above information is correct to the best of my knowledge and belief.
(ii). After Form VAT-38, the following shall be inserted, namely:-
"THE NAGALAND VALUE ADDED TAX RULES, 2005
FORM VAT-39
[See Rule 48(7) (C)]
AT SOURCE OR NO DEDUCTION, AS THE CASE MAY BE.
Office address: .......................
Certificate No: .......................................... Date: ........................
1. Application in Form VAT-38 has been received from M/s (Address) ............................ on (date) .....................,
2. On verification of the documents furnished by the applicant, I am satisfied that the contract No .................. dated .................... relating to ......................
(nature of the works contract).
(i) is an indivisible Works Contract.
(ii) a divisible Works Contract of supply and labour
(iii) is purely of labour and/or service.
Therefore, I certify that on the amount payable towards the said contract:-
(a) No tax is deductible at source.
(b) The amount of tax deductible at source is Rs .................................
3. That nothing in the said certificate shall affect the tax liability of the dealer under the Act
(iii). After Form VAT-39, the following shall be inserted, namely:-
To, .............................................
.............................................
Sir,
(Name of the contractor/supplier/lessor); and
Whereas, I/We furnish hereunder the following particulars relating to the said contract:-
1. Particulars of the Contractor/Supplier/lessor:
(i) Full name and address (in block letters) .............................................
(ii) Taxpayer Identification Number (TIN) .................................................
2. Date of the contract: .................................................................
3. Break up value of the works contract involving transfer of property in goods:
4. Place where the contract is to be executed: ...............................
5. Date by which the contract is under taken to be completed .......................
6. Description of the works to be carried out: ........................................................................................
........................................................................................................................................................................
7. Details of the goods to be supplied by the contractee as free issue: .............................
(i) Description of goods: .............
(ii) Value of:........................
I/We further declare that as stated above, I/We........................ have entered in a works contract involving transfer of property in goods (whether as goods or is some other form).
I/We further declare that to the best of my/our knowledge and belief, the information furnished above is correct, complete and is truly stated and nothing has been concealed.
FORM VAT-41
[See Rule 48(10) (a)]
FORM OF APPLICATION FOR ALLOTMENT OF TAX DEDUCTION ACCOUNT NUMBER
To ....................................
...........................................
Whereas I/We am/are responsible to deduct tax in accordance with section 92 of the Nagaland Value Added Tax Act, 2005;
And whereas the tax deduction account number has to be allotted to me/us;
I/We hereby requested that a tax deduction account number be allotted to me/us;
I/We give below the necessary particular:-
1. Name of the office:
2. Designation of the Drawing and Disbursing Officer:
3. Address:
4. Nature of transaction against which payment is made: Works contract/Supply/Lease
VERIFICATION
I/We ................................. in my/our capacity as .......................do hereby declare that what is stated above is true to the best of my/our knowledge and belief.
(v). After Form VAT-41, the following shall be inserted, namely:-
FORM VAT-42
[See Rule 48(10) (b)]
TAX DEDUCTION ACCOUNT NUMBER AND CERTIFICATE UNDER NAGALAND VALUE ADDED TAX ACT, 2005
Note : One TAN shall be applicable for each Unit/Office of person responsible for deduction of tax
(vi) After Form VAT - 42 the following shall be inserted namely : -
The Above Amendments shall come into force from the date issue of this notification.
Toshi Iyer
Principal Secretary & Finance Commissioner