Payment and Recovery of Tax

22. 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) 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.

(3-A) Notwithstanding any thing contained in sub-section 93), 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.”.

(3-B) Any person or authority, notified by the commissinoer, shall deduct from out of the amount payable by him to a dealer in respect of sales of any goods as may be specified, an amount  calculated at the rate as may be notified and such other person or authority deducting such tax at source, shall remit it in tha manner as may be prescribed.

(4) If any authoity or person fails to deduct tax at source in accordance with the sub-section (3), (3A), (3B) or remit the amount of the tax, so deducted, within the  prescribed time to the state  government, such amount of tax, not collected or not remitted shall be recoverable from such authority or person, as if were the tax liable to be paid by him under the act.

Provided that all the provisions including the provisions relating to interest or penalty applicable to failure to pay tax under the act shall apply mutatis-mutandis to the tax not deducted or remitted.

(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.

*(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.