(1) The tax deducted at source referred to in sub-section (2) of section 28 of the Act shall be remitted as under:-

(i) the employer effecting deduction of tax under sub-section (1) of section 28 of the Act, shall pay the tax deducted every month within the time as laid down under rule 24 into the appropriate Government treasury and every such remittance shall be accompanied by copy of e-challan.

(ii) After payment, e-challan shall be retained by the employer. Copy of such e-challan shall be furnished by the employer to the Commissioner alongwith the statement specified in sub-rule (2) of this rule.

(2) Issue of certificate for deduction of tax at source-

(i) The certificate referred to in sub-section (3) of section 28 of the Act, shall be in Form VAT -VII hereto and it shall carry serial number and date and shall be signed by the employer effecting the tax deduction or his authorised representative.

(ii) The certificate shall be issued within thirty days from the end of the quarter during which the deduction is effected.

(iii) Every such certificate shall be issued in quadruplicate. The original and the duplicate shall be made over to the contractor in respect of whom deduction is effected. The contractor shall furnish the original alongwith his return to the Appropriate Assessing Authority retaining the duplicate for his record. The employer shall retain the quadruplicate for his record and send the triplicate to the Commissioner with the statement in Form VAT - XXVII hereto within thirty days from the end of the quarter to which the statement relates.

(iv) Every employer effecting tax deduction at source and issuing certificate in Form VAT -VII shall maintain proper record of certificates of tax deduction issued in Form - VAT XXVIII hereto which shall be open for inspection to the officers of Commercial Tax Department at all reasonable time. In case where records are maintained in electronic system, the Commissioner, may dispense with the maintenance of records in Form VAT -XXVIII, subject to such conditions as he may impose.

(3) A works contractor executing works contract exceeding Rs. 100 crore in value and which is declared by the Government as project of State importance, may make an application to the Commissioner seeking for deduction of tax at a rate not lower than 3%, in respect of the said work contract, subject to the following conditions, namely:-

(i) The works contractor is a registered dealer for a period of not less than 3 years;

(ii) The works contractor is not in arrears of any tax or other amount due under the Act on the date of said application;

(iii) The works contractor is not a non-resident dealer;

(iv) The application shall be made within 90 days from the date of the commencement of the works contract if he has commenced the works contract during the course of the year;

(v) The works contractor proves to the satisfaction of the Commissioner, that, in respect of the works contract allotted, required tax will be deducted at source or has been deducted and deposited in the Treasury from the account of sub-contractor;

(vi) The works contractor shall furnish such security as the Commissioner may demand;

(vii) The reduction granted in the amount of deduction, is liable to be withdrawn forthwith, if the works contractor commits the default in filing the returns or in payment of tax payable under the Act within the time prescribed;

(viii) The reduction shall not be granted except with the prior approval of the Government.