State Act

THE KARNATAKA SALES TAX ACT, 1957

1[19-AA. Deduction of tax at source in other cases.- (1) Notwithstanding anything contained in this Act, the Government of Karnataka, 2[and Zilla Panchayats]2 shall deduct out of the amounts payable by them to a dealer in respect of the purchase of goods, other than Petrol and High Speed Diesel, made by them for their bona fide use, an amount at the rate of four per cent or at the rate applicable for the goods so purchased whichever is lower: Provided that,— (a) no such deductions shall be made if the amount payable to the dealer by the authorities mentioned in this sub-section is less than one thousand rupees; or 1[(aa) x x x]1 1[(aaa) no such deduction shall be made in respect of dealers as may be notified by the Commissioner from time to time.]1 1[b) no amount shall be deducted under this sub-section, if any of the goods purchased by the authorities mentioned in this sub-section is not liable to tax either on account of said goods being exempt from tax or not liable to tax at the hands of the selling dealer on the ground that the said goods have been subjected to tax at the hands of the earlier seller, or if the tax payable by the selling dealer on any goods is deferred or exempted by the State Government in pursuance of its Industrial Policy and upon being so certified by the Assessing Authority of the area on an application made by the dealer, which shall be disposed of by the Assessing Authority within one month from the date of receipt, either by issue of certificate as aforesaid or by intimating to the dealer his in-eligibility to such a certificate, as the case may be;]1 (2) The authority making deduction under sub-section (1), shall send every month to the prescribed authority a statement in the prescribed form containing particulars of tax deducted during the preceding month and pay full amount of the tax so deducted by it or a receipt from a Government Treasury for having remitted the tax so deducted by it within twenty days after the close of the preceding month in which such deductions were made and the amount so payable shall for the purposes of section 13 be deemed to be an amount due under this Act: Provided that where default is made in complying with the provisions of this sub-section, the prescribed authority may, after such enquiry as it deems fit and after giving an opportunity to the concerned authority of being heard, determine to the best of its judgment, the amount payable under this sub-section by such authority and the amount so determined shall be deemed to be an amount due under the Act for the purposes of section 13. 1[(2A) If default is committed in the payment of tax deducted beyond ten days after the expiry of the period specified in sub-section (2), the authority making deductions under sub-section (1) shall pay by way of penalty a sum equal to the penalty specified under clause (ii) of sub-section (2) of section 13 during the period in which such default is continued.]1 (3) The authority making deduction under sub-section (1) shall furnish to the dealer from whom such deduction is made, a certificate obtained from the prescribed authority containing such particulars as may be prescribed. (4) Payment by way of deduction in accordance with sub-section (1) shall be without prejudice to any other mode of recovery of tax due under this Act from the dealer effecting the sales to the authorities mentioned in sub-section (1). (5) Where tax in respect of the purchases is remitted under sub-section (2), the tax payable by the dealer for any month, quarter or for the whole year, as the case may be, in respect of such sales shall be reduced by the amount of tax already remitted under the said sub-section: Provided that the burden of proving that the tax on such sales has already been remitted and of establishing the exact quantum of tax so remitted shall be on the dealer claiming the reduction.]1