Manner of refund or adjustment of tax deducted at source in respect of works contract, to a dealer having no liability to pay tax.
81. (1) A dealer having no liability to pay tax under the Act, who intends to claim refund under sub-section (6) of section 40, shall, after the receipt of the certificate of deduction in Form No. 18 issued under sub-section (3) of the said section, make an application to the appropriate assessing authority for refund of the amount of such tax deducted under sub-section (1) of the said section from payment to him.
Provided that in making an application for such refund by a dealer to the appropriate assessing authority, the limitation of three years according to the provisions of Article 24 of the Schedule to the Limitation Act, 1963 (36 of 1963) shall apply from the date of receipt of the certificate of deduction.
(2) If the authority referred to in sub-rule (l) is satisfied that the dealer is not liable to pay tax under section 14 and the amount deducted from the amount payable to the dealer under sub-section (1), and deposited under sub-section (2), of section 40, was not payable by him under the Act in respect of period during which such deduction was made, such authority shall, within six months from the date of such claim-
(a) issue a Refund Payment Order (cash)or cheque to the dealer allowing refund for the amount deducted in excess of the amount payable by him for such period, or
(b) adjust the excess amount deducted towards the arrears of tax, penalty or interest in respect of any other period, and refund the balance, if any, in the manner referred to in clause (a), where the dealer is found to have incurred liability at a later date, under section 10, or section 11, or section 14 or sub-section (3) of section 24 or sub-section (3) of section 27C. |