(1)(a) Where any contractee awards a contract to a works contractor and where the contractee is liable for deduction of tax at source of Advance Tax, as specified in the notification issued under section 44 of the Act by the State Government in this behalf, shall make an online application to the registering authority in whose area the office or principal place of business is located in Form JVAT 125 for enrolment and such authority after satisfying himself that the application is in order shall, within seven days from receipt of such application issue online a certificate allotting the Tax Deduction Number in Form JVAT 126.
(b) the tax shall be deducted from the payment of valuable consideration after deducting the amount of transactions falling under section 3, 4 and 5 of the CST Act, 1956.
(2) The amount of Advance Tax so deducted by the Contractee in pursuance to the notification issued in this behalf, the same shall be deposited in the Government Treasury in the following manner: -
(a) In the circumstances, when the contractee is the department of the State Government, it will deduct the Advance Tax from the bills of the contractor, in accordance to the rules, as provided by the Government for such respective departments and shall remit to the Government Treasury for credit therein into the respective "0040 Head". Schedule (used by the works department of the State Government) for such deductions available on departmental website shall be filed by the contractee for each month within fifteen days of the following month. Such schedule filed online shall be digitally signed by the authorised person.
Provided that the Commissioner may relax the provision of digital signature for a particular period.
(b) In the circumstances, where the contractee is other than the contractee mentioned in sub-rule (a) of this Rule, such person shall deposit the deducted Advance tax within fifteen days of the close of each month into the Head "0040", directly into the Government Treasury through a prescribed Challan JVAT 205 online separately for each work contractor from whose bills such deduction has been made, and furnish a statement in JVAT 215 available on departmental website. Such statement shall be filed by the contractee for each month within fifteen days of the following month. Such statement filed online shall be digitally signed by the authorised person.
(c) (clause (c) of sub rule(2) is effective from 01-04-2015) Every person or Government Department referred in this Rule, shall issue to the contractor, a certificate of tax deduction at source in Form JVAT 400 generated electronically through the departmental online system on the basis of tax deducted at source by the contractee for respective month, as shown in Schedule or JVAT 215 as the case may be, furnished monthly for each such contractor.
Provided that, such generated Certificate issued to the contractor in Form JVAT 400, in respect to a contractor shall be accepted and adjusted against the tax payable by such contractor, by the Assessing Authority, where the contractor is registered.