(1) Where the awarder is a Department of any Government, a corporation, a public undertaking, a cooperative society, a local body, a statutory body, an autonomous body, a trust or a private or public limited company, limited liability partnership, and the gross amount of works contract(s) awarded by him in a year exceeds rupees ten lacs, such awarder shall obtain Awarder Identification Certificate by submitting an application in Form VAT-40 electronically through the official web-site of the department to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner,within thirty days from the day on which the gross amount of works contract(s) exceeds rupees ten lacs or upto 30.09.2021, whichever is later:

Provided that where the awarder is a Government Department, or a corporation, company, public undertaking, cooperative society, local body, statutory body or autonomous body in which Government has a share capital, it is not mandatory for such awarder to obtain the Awarder Identification Certificate pertaining to any period upto 30.06.2017.

(2) The officer authorized by the Commissioner under sub-rule (1), on receipt of the application shall issue him a Awarder Identification Certificate in Form VAT-40A duly digitally signed by him within 24 hours of the receipt of such application, and shall forward Awarder Identification Certificate to the awarder electronically on the email address as provided in Form VAT-40.

(3) Where the Awarder Identification Certificate issued to any awarder is lost or misplaced or accidentally destroyed, he may obtain a duplicate copy thereof, by submitting an application in Form VAT-40B electronically through the official web-site of the department to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner.

(4) Every awarder who holds a Awarder Identification Certificate, within thirty days of occurrence of such change or event as mentioned in sub-section (2) or (3) of section 16 of the Act, shall submit an application in Form VAT-40B electronically through the official web-site of the department, to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner. The officer authorised, shall after due enquiry, amend the Awarder Identification Certificate within thirty days of receipt of such application and where such application is not disposed of within the said period, the same shall be deemed to have been accepted. The officer authorised shall forward the amended certificate of Tax Deduction to the awarder electronically on the email address as provided in Form VAT-40B.

(5) Where the activity of awarding the works contract of any awarder who holds a Awarder Identification Certificate discontinued permanently, such shall within thirty days of occurrence of such event submit an application in Form VAT-40B electronically through the official web-site of the department, to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner. The officer authorised shall after due enquiry cancel the Awarder Identification Certificate.

(6) Every awarder holding a Awarder Identification Certificate and is responsible for payment of any sum to a contractor for execution of any works contract, shall at the time of credit of such sum to the account of the contractor or at the time of making such payment by any mode, deduct an amount as may be notified by the State Government in lieu of tax. However, where the contractor has deposited the amount to be deducted by such awarder, electronically through e-GRAS in to the Government exchequer, and submits the proof of such deposit to the awarder, on being satisfied the awarder shall not deduct such amount in lieu of tax. A deduction made under this sub-section shall be adjusted against the tax liability created at the time of the assessment of the contractor.

(7) Where the contractor is not liable to pay tax under the Act on the works contract, he may obtain a No Tax Deduction Certificate by submitting an application in Form VAT-40C electronically through the official web-site of the department to any officer not below the rank of an Assistant Commercial Taxes Officer, as may be authorized by the Commissioner. The officer authorised on being satisfied shall grant him the No Tax Deduction Certificate in Form VAT-40D, within thirty days of the receipt of such application, and shall forward to the contractor electronically on the email address as provided in Form VAT-40C. No amount shall be deducted by the awarder where the contractor submits him No Tax Deduction Certificate in Form VAT-40D, duly issued by the department.

(8) Every awarder holding an Awarder Identification Certificate shall deposit the amount deducted by him in the manner as provided in rule 39 of these rules, within fifteen days of the close of the month of such deduction.

(8A) Every awarder holding an Awarder Identification Certificate, shall submit a statement in Form VAT-40E electronically through the official website of the department to the officer authorized under subrule (1), within thirty days of the end of the quarter or upto 30.09.2021, whichever is later, whichever is later. Where the awarder fails to furnish the statement as mentioned above, the said officer after affording a reasonable opportunity of being heard, may impose penalty under section 64 of the Act.

(8B) Where an awarder discovers any omission or error in the Form VAT-40E furnished by him, he may furnish a revised Form VAT-40E within three months from the close of relevant year or upto 30.09.2021, whichever is later.:

Provided that for the year 2015-16 the awarder may furnish revised Form VAT-40E upto 31.03.2017.

(9) Where the amount is not deducted as prescribed in sub-rule (8), the awarder shall be liable to penalty as provided for in the Act. In such cases the contractor shall be liable to pay the said amount together with interest at the rate provided for in the Act from the date of the receipt of the payment in any form by him.

(10) Where the amount is not deductible from the amount of payment made to a contractor under these rules or under orders of a court, the contractor shall deposit such amount like any other dealer in accordance with the notification issued under section 20.

(11) On receipt of Form VAT-40E, the certificate of deduction of tax in Form VAT-41 shall be generated and forwarded to the contractor and to the officer authorized under sub-rule (1) electronically through the official web-site of the department. In case, Form VAT-40E is revised by the awarder, a revised Form VAT-41 shall be generated electronically through the official web-site of the department, and the previously generated Form VAT-41 shall be cancelled:

Provided that where the awarder is a Government Department, or a corporation, company, public undertaking, cooperative society, local body, statutory body or autonomous body in which Government has a share capital and has not obtained Awarder Identification Certificate, he shall issue duly filled Form VAT-41 manually to the contractor and the contractor shall submit the same to the Assessing Authority concerned:

Provided further that where such awarder has already issued Form VAT-41 manually to the contractor and the contractor has submitted the same to the Assessing Authority concerned on or before 23rd February, 2021, in such cases, fresh Form VAT- 41 shall not be required to be submitted.

(12) Omitted w.e.f. 01-04-2016.

(13) Omitted w.e.f. 01-04-2016.

(14) Omitted w.e.f. 01-04-2016.

(15) Omitted w.e.f. 01-04-2016.

(16) Omitted w.e.f. 01-04-2016.

(17) Notwithstanding anything contained in this rule, the provisions which were in force prior to 01.12.2014 shall remain in force up to 28.02.2015 for the purpose of furnishing of particulars of contract, deduction of amount in lieu of tax, deposit of amount in lieu of tax and information thereof, obtaining and issuance of certificate of deduction of tax and Awarder Identification Certificate.