Amendment status not verified — confirm the current text below against the official source.
Deduction oftax at source from the paymeDt to dealer (1) Nolwiihstanding anltl'ring contained in any other Iaw or contact to the confary any person or' any specji'ie.l class ofpersons rcsponsible io pay eny sum to any de erforsaleorsupplies made Lr! itto the Stale or Ccntfal Government including depallmcnt ofother States situaled in Sikkim. anl localbody, any authority orcorporation established by ot underastalule and any Statc or Central Govemlnent undel taking shall, at the lime ofcredit ofsuch sum to lhe account ofthe dealer or at the time ofpayment thereofin cash or by cheque or drafl or any orhermode. dcdrrct the amounl oftax from the bills or invoices, at the rate ormtes as specified in the Schedules under Scction 12. (2) Theamountoftax so deducted shall be deemed tobethe amount oftax collected by the dealerfrorn thestatc or Cenral Government Depa menls lr aforesaid organizaiions or authorilies, as the cane may be, within the nreaning ofsection 8. (3) Whilc rraking deduction under sub-section (l)' the deducting autl]ority shallgl-anta cedificale to thedealer in the prescribed forln and shall send a copy lhereofto the concemed assessing aulhodty within whoseiurisdiction such saleorsupply is made. (,1) The clealcr shallfurnish an authenticated copy ofsuch ceftifcale to lhe concemed assessing aulhodty alongwith lhe ieturns as proofofpayment of tax (5) The amount deducted from the bills o. invoices shallbc deposited to the credii ofthe Stare Govelnment within filteen days from the date oisuch deductions jn such fotm or r:hallan or through book adjrlstmentas may beprescibed (6) The dech-rcting aulhcriry shallsupply a copy ofthe form o1 challan or documenl ofhooks a.ljuslment. as the case may be, showing the detaiis ofdedr.jtion oftax to the concemed i$sessing authodty. l1 (7) The reminance or deposit ofdeducted tax to the creditofthe StateCovernment shall be adjusted by the concemed assessing aulhority towa]ds the tax liability ofthe dealer and sl'rall constitute a good ard sufficient discharge of the liability of the deducting authodty to the dealer 10 the extent ofthe amount remitted 01 deposited. (8) Ifmy person fails to deduct, orhaving deductcd, fails toremit to the State GoventDent wilhin the stipulated time, the amountdeduolible under sub-section (l), he shall be liable tbr penalty ofa sun not exceeding twicethe amoLlni dcductible: Provided that no penalty underthis sub-section shall be irrposcd unless arcasonable opportrnily oibe'ng heiLrtl rs given to such person. (9) The amount de.duclible andactually deducted under sub-section (1) and pen:rlty levied under' sub-section (8) shall be deemed to be a tax for the purpose ofthe Sikkim (Colleodon oflhxes and Prcvention of EvasioD ofPayment ofTaxes) Act, 1987.