40.Tax Deduction At Source. M. VAT RULES
40.Tax Deduction At Source. –
(1) (a) Every employer who is required to deduct tax under clause (b) of sub-section (1) of section 31 shall within ten days from the expiry of the month during which tax is so required to be deducted, remit the full amount of such tax due and deductible to the Government treasury irrespective of the actual amount of tax deducted by him, from such dealer.
(For the above sub-rule (1) clause (a) the following clause (a) is substituted by Notification No. STR-1506/CR-38/Taxation-1 Dt.08.09.2006)
(a) Every employer who is required to deduct tax under clause (b) of sub-section (1) of section 31 shall within 21 days from the expiry of the month during which tax is so required to be deducted, remit the full amount of such tax due and deductible in return-cum-chalan in form 405 into the Government Treasury irrespective of the actual amount of tax deducted by him, from such dealer.
(b) The employer required to remit tax, shall furnish a certificate in Form 402 in respect of the amount so remitted immediately after the deduction is made, to the dealer in respect of whom such deduction is made.
(c) The employer who had deducted and remitted such tax shall send a statement in duplicate to the registering authority who has jurisdiction over the contractor and in case of any unregistered contractor, whether or not resident in the State of Maharashtra for Mumbai Zone, send a statement in Form 403 to the registering authority designated for non-resident dealers and in respect of a contractor outside Mumbai Zone, shall send a statement to the respective Joint Commissioner of Sales Tax (Administration) in whose jurisdiction the said contractor carries on his business within twenty days after the end of month to which such statement relates.
( The above clause (c) is deleted by Notification No. STR-1506/CR-38/Taxation-1 Dt.08.09.2006)
(d) Any employer issuing a certificate as required by clause (b) shall maintain for each year a separate account in Form 404 showing the amount of tax deducted, certificate of tax deduction issued, and the particulars of remitances made to the Government treasury and shall file a return in Form 405 with the Joint Commissioner of Sales Tax (Administration) in whose jurisdiction the place of business of the employer is situated within three months of the end of the year to which the return relates.
(2) (a) An application for grant of certificate of deduction of tax at source or no deduction of tax under sub-section (3) of section 31 shall be made in Form 410 by the dealer to the registering authority who is 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 at source, or no deduction, as the case may be.
(c) If the particulars and documents furnished by the dealer are correct and complete in all respects and after making such enquiry as may be deemed necessary, the registering authority is satisfied that the contract involves both transfer of property in goods and labour or service, or involves only labour or service and justifies deduction of tax at source or no deduction of tax, as the case may be, he shall, after giving the applicant a reasonable opportunity of being heard, grant a certificate in Form 411 within a period of one month from the of receipt of the application and shall forward a copy of such certificate to the employer for whom the work is executed. If it comes to the notice of the registering 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.
(For the above sub-rule (2) the following sub-rule (2) is substituted by Notification No. STR-1506/CR-38/Taxation-1 Dt.08.09.2006)
(2)(a) The application for the purpose of sub-clause (ii) of clause (b) of sub-section (1) of section 31 shall be made in Form 410 to the registering 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.
(c) If the particulars and documents furnished by the dealer are correct and complete in all respects and after making such enquiry as may be deemed necessary, the Commissioner is satisfied that the contract under reference is not a works contract which involves transfer of property in goods (whether as goods or in some other form), he may, after giving the applicant a reasonable opportunity of being heard, grant such certificate. A copy of such certificate shall be sent to the employer for whom the work is executed”;
(3) The period for application in Form 401 to the Commissioner for allotment of sales tax (Works Contract) deduction number shall be three months from the day he becomes so liable to deduct the tax.
( The above sub-rule (3) is deleted by Notification No. STR-1506/CR-38/Taxation-1 Dt.08.09.2006)
