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40A. Information of purchases in certain cases

(1) Where a State Government department or a public sector undertaking, corporation or company owned or controlled by the State Government or a co-operative society having contribution of State Government in its share capital or a municipality or a Panchayati Raj Institution at district and block level or any other local authority or statutory body constituted by or under a law of the State Legislature, hereinafter in this rule referred to as the purchaser, has purchased any goods from a registered dealer of the State, it shall deduct an amount equal to:

(i) net tax payable to be deposited as mentioned on the VAT invoice under sub- rule (10) of rule 38; or/and

(ii) tax on the invoice, in case goods are sold against the invoice and shall issue a certificate of deduction of tax to the selling registered dealer in Form VAT-41A.

(2) Blank Forms VAT-41A shall be obtained by the purchaser from the Assistant Commissioner or the Commercial Taxes Officer of the area where the office of such purchaser is situated, or from any other officer authorized by the Commissioner, as the case may be, hereinafter in this rule referred to as the issuing authority, on payment of rupees fifty for each book containing twenty five forms.

(3) For obtaining blank Form VAT-41A the purchaser, shall apply to the issuing authority stating his requirement of such Form and shall furnish such other particulars, information, statements and documents as may be required by the issuing authority for his satisfaction about the bona fide use of such Forms issued to the applicant on previous occasions and has bona fide requirements of such Forms.

(4) Any deduction made under sub-rule (1) shall be adjusted against the tax liability created at the time of the assessment of the selling registered dealer.

(5) The amount in lieu of tax deducted in sub-rule (1) shall be deposited by the purchaser, through a challan in Form VAT-37 in the Government account within fifteen days of the close of the month of such deduction. A statement in Form VAT-40A, mentioning the details of tax deducted and deposited for each purchase along with the duplicate copy of Form VAT- 41A shall be submitted to the issuing authority accompanied with Part IV of the challan within one month from the date of such deposits.

(6) Where the purchaser, fails to submit the statement as mentioned in sub rule (5), the issuing authority after affording a reasonable opportunity of being heard, may impose penalty under section 64 of the Act.

(7) The issuing authority after receiving the duplicate copy of Form VAT- 41A, shall verify the correctness of the deposits, and shall send the same immediately to the assessing authority of the selling registered dealer.

(8) Where the amount is not deducted as prescribed in sub-rule (1), the purchaser, or the person authorized by purchaser shall be liable to penalty as provided for in the Act. In such cases the selling dealer 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."