Download Kerala VAT FORM NO. 20B: Liability Certificate To Be Issued By The Assessing Authority To The Awarder/Works Contractor Before Final Payment Under The Kerala Value Added Tax Rules, 2005
As per Kerala vat rule 42
(1) The declaration specified in sub-section (2) of section 10 shall be in Form No. 20, the quarterly certificate in Form No. 20 A and the liability certificate shall be in Form No. 20 B (2) Every awarder making deduction from the payments made to a contractor under subsection (1) of Section 10 shall pay the amount so deducted to the assessing authority, with whom the contractor is registered as a dealer, and if he is not so registered, to the assessing authority having jurisdiction over the area where the works contract is executed, by means of cheque or by a crossed demand draft in favour of the assessing authority within five days from the date of such deduction or by remitting the amount in the treasury in the name of the contractor within such period and producing the Chelan before such authority, along with a statement in Form No. 20C, within five days from the date of such deduction:
Provided that no amount shall be deducted under sub-section (1) of section 10 if there is no transfer of goods involved in the execution of the works contract or the goods which are transferred in the execution of the works contract are only those falling under the First Schedule or where the payment relates to that portion of a contract which relates to transfer of goods involved in the execution of works contract other than those executed in the state.
(3) Where a works contractor has opted for payment of tax at compounded rates in accordance with the provisions of section 8, the awarder may deduct tax at the compounded rate, where a specific provision is incorporated in the contract or where the contractor produces the liability certificate issued by the assessing authority in Form No. 20 B. The tax so recovered shall be remitted to Government as provided for under sub-rule (2) above.
(4) Where an awarder deducts tax under sub- rule (2) or sub-rule (3) from the payment due to any contractor, he shall issue a certificate to such contractor in Form No.20 F
(5) Notwithstanding anything contained in sub-rule (2) or sub-rule (3), any contractor who pays tax regularly in accordance with the rules, on production of a certificate issued to that effect by the assessing authority in Form. No. 20 E, shall be entitled to payment of the contract amount without deduction of sales tax due on the contract for the period and to the extent of the works contract specified in the certificate.
(6) Any contractor may apply to the assessing authority in Form No.20 D for the issue of such certificate. The assessing authority, if it is satisfied that the applicant complies with the requirement of sub-rule (5), may issue a certificate in Form No. 20 E
(7) Notwithstanding anything contained in sub-rule (2), if the total turnover in respect of a contractor for a year does not exceed the assessable limit prescribed under Section 6, the amount(s) recovered and remitted by any awarder under sub-rule (2) for the period shall be refunded or adjusted, as the case may be, by the assessing authority.
(8) The amount deducted by the awarder from the payments due to the contractor and remitted under sub-rule (2) shall be adjusted against the tax or other amount due from the contractor for the return period during which such deduction is made.
(9) Where the awarder supplies any material to the contractor for use in the works contract and the price of the goods is deducted from the payment made to the contractor, the awarder shall furnish the details to the assessing authority along with the return filed under Rule 32.