Amendment status not verified — confirm the current text below against the official source.
In the principal Act, after section 5A, the following section shall be inserted, namely,: -"58 (1) Notwithstanding anything contained in section 4A, section 11 and section ~4A, every contractor referred to in sub-section (ba) of section 2, may, subject to such restrictions and conditions and insuch manner as may be prescribed, at his option, instead of paying tax in accordance with section 4A and section 14A,pay, on the total value of each of the works contract executed by him, a lump sum tax, by way of composition, at such rate, not exceeding fifteen percent, as the State Government may, from time to time, by notification, specify: Provided that in case of cancellation of the permission granted for payment of lump sum tax by way of composition, the provisions of section 4A and 14A and the rules made thereunder shall apply. (2) A contractor, exercising option under sub- section (1) shall, so long as the option remains in force, not be required to maintain accounts of his business under this Act or the rules made thereunder except the records in original of the works contract, extent of their execution and payments received or receivable in relation to such works contract, executed or under execution. (3) The State Government may prescribe that every person or any specified class of persons, making any payment to contactor who has exercised option under 2 situated in Sikkim, any local body, any authority or corporation established by or under a statute and any State or Central Government undertaking shall, at the time of credit of such sum to the account of the dealer or at the time of payment thereof in cash or by cheque or draft or any other mode, deduct the amount of sales tax from the bills or invoices, at the rate or rates notified under this Act from time to time. The amount of sales tax so deducted shall be deemed to be the amount of sales tax collected by the dealer from the State or Central Government Departments or aforesaid organizations or authorities, as the case may be, within the meaning of section 15. i. While making deduction as referred to in sub- section (1), the deducting authority shall grant a certificate to the dealer in the prescribed form and shall send a copy thereof to the concerned authority of the Commercial Tax Office within whose jurisdiction such sale or supply is made. The dealer shall furnish an authenticated copy of such certificate to the concerned assessing authority along with the returns as a proof of payment of sales tax. ii. The amount deducted from the bills or invoices shall be deposited to the credit of the State. Government within fifteen days from the date of such deductions in such form or challan as may be prescribed or through book adjustment prescribed by the Department of Finance, Revenue and Expenditure, Government of Sikkim. iii. The deducting authority shall supply a copy of the form or challan or document of books adjustment, as the case may be, showing the details of deduction of sales tax, to the concerned Commercial Tax Office. iv. The remittance or deposit of deducted sales tax to the credit of the State Government shall be adjusted by the Commercial Tax Office towards the sales tax liability of the dealer and shall constitute a good and sufficient discharge of the liability of the deducting authority to the dealer to the extent of the amount remitted or deposited. 5 Amendment of section 22 Amendment of section 23 Amendment of section 28 Amendment of section 28 v. If any person fails to deduct, or having deducted, fails to remit to the State Government within the stipulated time, the amount deductible under sub-section (1), he shall be liable for penalty of a sum not exceeding twice the amount deductible: