20. Payment of tax

(1) Tax payable under this Act shall be deposited into a Government treasury or a bank authorised to receive money on behalf of the State Government, on the basis of accounts of a dealer in such manner and at such intervals as may be notified by the State Government, and different intervals may be notified for different categories of dealers.

(2) Notwithstanding anything contained in this Act, in the case of works contract, an amount in lieu of tax shall be deducted by the awarder at such rate as notified by the State Government not exceeding six percent of the total value of the contract, in such manner and under such circumstances, as may be prescribed, from every bill of payment to a contractor and such sum shall be deposited or credited in the Government account within the specified time and in the prescribed manner.

“(2A) Notwithstanding anything contained in this Act, but subject to the provisions of sub-section (2), where a registered dealer sells goods to a department of the State Government or to 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, such department, public sector undertaking, corporation, company, co-operative society, municipality, Panchayati Raj institution, local authority or statutory body, as the case may be, shall deduct from the amount payable to the selling dealer an amount equal to tax payable by such dealer on such goods and shall deposit or credit the same in the Government account, in the manner and in the time as may be prescribed.".

"Provided that the State Government may, if it considers necessary in the public interest so to do, exempt, by notification in the Official Gazette, any class of sales or purchases from the provision of this sub-section."

(3) Notwithstanding anything contained in sub–section (1), where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette, defer the payment of tax payable by any class of dealers, with or without interest, for any period on such conditions and under such circumstances as may be specified in the notification.

(4) In case of any delay in payment of amount required to be deposited under any of the sub–sections (1), (2) and (3), the amount of interest under sub–section (1) of section 55 shall also be paid along with the amount of tax.

(5) Every deposit of tax or deduction of amount in lieu of tax made under this section shall be deemed to be provisional subject to adjustment against the tax liability determined in the assessment made under this Act.

"(6) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, allow the dealer, availing the facility of deferment under sub–section (3), to make prepayment of the amount of deferred tax on such terms and conditions including the condition of remission from a part of deferred tax, as may be specified in such notification."