2012 (4) TMI 547

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....taranchal Trade Tax Act held the fort. Both the Acts obliged every person responsible for making payment to a contractor for discharge of any liability on account of valuable consideration payable for transfer of property in goods in pursuance with works contract to deduct four per cent of such payment at the time of making such payment and to deposit the same with the Government Treasury before the expiry of the month following the date of deduction. This obligation was imposed by section 8D of the Uttaranchal Trade Tax Act and by section 35 of the Uttarakhand Value Added Tax Act, 2005. Both the said Acts provided for imposition of penalty not exceeding twice the amount deductible in case there is failure to deduct and in case there is fai....

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....ear provisions of section 8D and rule 48 of the Trade Tax Act, this work of the contractee-department comes within the purview of negligent default. Hence, keeping in view the fact that the contractee-department is a Government Department and that there was the amount of TDS was deposited regularly with delay after the prescribed period in every month, it is proper to impose penalty under section 8D(6) for the concerned month in the following manner: Sl. No. Name of the month Amount of the approved TDS Percentage of the amount of the TDS Amount of the penalty imposed under section 8D(6) 1. April 2005 1,29,459 10% 12,946 2. May 2005 64,019 15% 9,603 3. June 2005 6,79,625 20% 1,35,92....