Tax deducted at source. Rule 59

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....zette, be notified by the Commissioner from time to time,  shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by any other mode, whichever is earlier, deduct tax thereon at the rate of ^8[four] percent.      ^3[^9[***] ^     12[Provided that the rate of deduction of tax (TDS) shall be  6% in case of sub-contractors not registered under this Act.]       (1A) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor, in pursuance of a contract with the sub-contractor, for value exceeding twenty thousand rupees or such amount as may, by order in writi....

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....d, the person responsible for making payment under sub-section (1) shall, until such certificate is cancelled by the Commissioner, deduct tax at the rate specified in such certificate or deduct no tax, as the case may be.       (4)  The amount deducted under this section shall be deposited into the appropriate Government treasury by the person making such deduction ^5[before the expiry of fifteen days] following the month in which such deduction is made in the manner as may be prescribed.       (5)  The person making such deduction under this section shall, at the time of payment or discharge, furnish to the contractor from whose bills or invoices such deduction is made, a ce....

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.... to in this section fails to make the deduction or, after deducting fails to deposit the amount so deducted as required in this section, the Commissioner may, by order in writing, direct that such person shall pay, by way of penalty, a sum not exceeding twice the amount deductible under this section besides tax deductible but not so deducted and, if deducted, not so deposited into the appropriate Government treasury.       (9)  Without prejudice to the provisions of sub-section (8), if any person fails to make deduction or, after deducting, fails to deposit the amount so deducted, he shall be liable to pay simple interest at the annual rate to be notified by the Government on the amount deductible under this....

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....he failure is rectified:      Provided that the amount of penalty payable under this sub- section shall not exceed twenty thousand rupees.      Explanation: Nothing contained in this section shall apply to works contract executed in the course of inter-state trade or commerce or outside the state, or in the course of import into or export out of India.]       ----------------------------------------------- Notes:- 1. Inserted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated 28.03.2005, w.e.f. 01.04.2005. 2. Substituted vide DVAT (Second Amendment) Act, 2005; No.F.14(29)/LA/2005/333, Dated 16.11.2005., w.e.f. 16.11.2005. before it was read as:- ....