Amendment status not verified — confirm the current text below against the official source.
( I) Notwithstanding anything contained in section 30 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 15 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 in force, (d) a company incorporated under the Companies Act, 1956, including a Government Undertaking, (e) a co-operative society registered or deemed to be registered under the West Bengal Co-operative Societies Act, 1983, 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 two per centum of such sum being paid in respect of such works contract: Provided that no deduction under his sub-section shall be made where— Deduction at source from payment to a dealer against execution of works contract. (i) the payment is made as advance on account of the execution of such works contract; (ii) no transfer of property in goods (whether as goods or in some other form) is involved in the execution of such works contract; or 489 The West Bengal Sales Tax Act, 1994. [West Ben. Act (Chapter V—Return and payment of tax, interest, penalty and deduction of amount at source towards payment of tax etc.—Section 38.) (iii) where the dealer produces a certificate from the Commissioner under section 94 that he has no liability to pay tax under section 15 or that he has paid tax payable by, or due from, him under that section: Provided further that no deduction under this sub-section shall be made in respect of that part of payment to a dealer which represents his contractual transfer price of the goods as referred to in clause (a) of sub- section (1) of section 21 where such dealer declares in writing to that effect claiming exemption from tax. (2) Where deduction of an amount is made under sub-section (1), the person making such deduction shall deposit the amount so deducted into a Government Treasury or the Reserve Bank of India within such time, in such manner, and in such form of challan, as may be prescribed. (3) After the deposit of the amount under sub-section (2), 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 separately and send a copy of receipted challan to the Commissioner along with the relevant certificate of deduction and such document as may be prescribed. (4) On receipt of a certificate of deduction referred to in sub-section (3), the deposit of an amount on account of a dealer referred to in sub- section (2) shall be adjusted by the Commissioner towards tax liability of the dealer under section 21, 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. (5) Where any person, while paying any sum to a dealer, contravenes the provisions of sub-section (1), sub-section (2) or sub-section (3), he shall be personally liable for such contravention, and the Commissioner may, after giving him an opportunity of being heard, by order in writing and in such manner as may be prescribed, impose on such person a penalty, not exceeding twice the amount required to be deducted and deposited by him into the Government Treasury or the Reserve Bank of India. (6) Where the dealer from whose account any amount has been deducted under sub-section (1) and deposited under sub-section (2) proves to the satisfaction of the Commissioner that he is not liable to pay tax under section 15 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 manner as may be prescribed. 490 The West Bengal Sales Tax Act, 1994. XLIX of 1994.] (Chapter V1.—Incentives to industrial units—tax holiday, deferment of payment of tax and remission of tax.—Sections 39, 40.) CHAPTER VI Incentives to industrial units—tax holiday, deferment of payment of tax and remission of tax