Due date for payment of tax
(1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed.
(2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under the Act, within the time prescribed or specified there for, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one percent per month for the period of delay from such prescribed or specified date for its payment. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.
(3) The Central Government or the State Government or an industrial, commercial or trading undertaking of the Central Government or of the State Government or a local authority or a statutory body or a company registered under the Companies Act, 1956 or any other person notified by the Commissioner, shall deduct from out of the amounts payable by them to a dealer in respect of works contract executed for them, an amount calculated at such rate as may be prescribed and such contractee deducting tax at source shall remit such amount in the manner prescribed.”
Provided further that no deduction shall be made from any amounts paid as consideration to any subcontractor if tax was already deducted by the contractee.
(The original sub – section (3) “In the case of a dealer executing works contract for Government or local authority, a tax at the rate of 4% shall be deducted from the amount payable to him and such contractee deducting tax at source shall remit such amount in the manner as may be prescribed.” Was substituted by the Act No 5 of 2007 dated 22-01-2007 w.e.f 01-09-2006.)
(3-A) Notwithstanding any thing contained in sub-section (3), in the case of a dealer, executing works contract for Government or Local Authority, wherever tax at the rate of 4% is added separately to the estimated value of the contract, such tax shall be collected by the contractee and remitted in the manner as may be prescribed.
(Sub-section 3-A is added by Act No 28 of 2008 dated 24-09-2008 w.e.f 24-09-2008)
(3B) Every Film Processing Laboratory by whatever name it is called shall collect tax at source a t the rates as may be prescribed for this purpose, from the film producers opting for payment of tax under sub-section (8A) of section 4 and remit the tax so collected on the immediate next working day from the date of such collection in the manner as may be prescribed.
(The subsection 3B was added by Act No 4 of 2009 dated 03-03-2009 w.e.f 01-05-2009)
- Any authority or person deducting any sum in accordance with the sub-section (3) or sub section (3-A) or sub-section (3-B) above shall pay within the prescribed time, the sum so deducted to the credit of the State Government. If the authority or the person does not deduct or after deducting fails to pay tax as required by this Section, he shall be deemed not to have paid the tax within the time he is required by or under the provisions of this Act to pay it and all the provisions of this Act including the provisions relating to interest shall apply mutatis mutandis to such unpaid tax.
(The original sub-section “(4) In case of (a VAT dealer) a dealer executing works contract (for a company) for Central Government or a Company or a statutory body or an undertaking or an institution other than Government or local authority irrespective of the quantum of value of the contract or for any other dealer or a firm where the value of the contract exceeds Rs.10,00,000/-(Rupees ten lakhs only), a tax (at the rate of 2%) at the rate of four percent (4%) shall be deducted from the amount payable to him and such contractee deducting tax at source shall remit such amount in the manner as may be prescribed.(The words “for a company” and “at the rate of 2%” are substituted by the Act No 23 of 2005 dated 26th Oct 2005 w.e.f 29-8-2005) (The words “a VAT dealer” substituted by the Act No 10 of 2006 dated 4th Jan 2006 w.e.f 24-11-2005)” was substituted by the Act No 5 of 2007 dated 22-01-2007 w.e.f 01-09-2006.)
(The words in italics i.e sub-section (3) or sub section (3-A) or sub-section (3-B) are substituted by Act No 4 of 2009 dated 03-03-2009 w.e.f 01-05-2009)
(5) Where a VAT dealer paid entry tax on any goods under Andhra Pradesh Entry Tax on entry of Motor Vehicles into Local Areas Act 1996 and Andhra Pradesh Tax on Entry of goods into Local Areas Act 2001, such amount shall be adjusted against VAT payable provided the credit for input tax is not restricted under *(….) Section 13 of the Act.
*(the words “the provision of sub-section (4) of” are omitted by the Act No 23 of 2005 dated 26th Oct 2005 w.e.f 29-8-2005).
(6) (a) The Deputy Commissioner, on an application made by a VAT dealer or any other dealer, permit the payment of any tax, penalty or other amount due under the Act in such instalments within such intervals and subject to such conditions, as he may specify in the said order, having regard to the circumstances of the each case;
(b) Where such payment in instalments is permitted, the dealer shall pay in addition to such tax, penalty, instalment or other amount, interest at the rate of one percent per month for the amount for the period from the date specified for its payment on the instalments so permitted.
(The original sub section (7)”Any person required to deduct tax at source under sub-sections (3) and (4) fails to deduct or to remit such tax shall be liable to pay interest at the rate of twelve percent (12%) per annum for the delayed period. (Sub section (7) is inserted by the Act No 23 of 2005 dated 26th Oct 2005 w.e.f 29-8-2005)” was omitted by the Act No 5 of 2007 dated 22-01-2007 w.e.f 01-09-2006.)