30. Issuance of Tax Clearance Certificate

(1) The application for the tax clearance certificate under section 42 shall be submitted in duplicate before the circle incharge in Form A -IV. The circle incharge, after making such inquiry as is deemed fit, shall either reject or accept the application within seven days of the receipt of the application.

(2) (a) An application referred to in sub-rule (1) shall be rejected if the dealer is either in arrears of admitted tax, interest, penalty or tax assessed or reassessed, in relation to which no stay order has been passed within a period of one year from the date of the passing of the order levying tax, by any superior court, or has not furnished a return for any period.

(b) Where an application is rejected the circle in charge shall specify the amount of arrears outstanding against the dealer or the period for which the return has not been filed. If the arrears are paid or the return is furnished, as the case may be, the tax clearance certificate shall be granted to the dealer, which shall be in Form C-IV.

(c) The tax clearance certificate granted under this rule shall ordinarily be valid for a period of one year from the date of its issue or for such lesser period as may be specified in the certificate.

(3) The copy of the tax clearance certificate marked “Original” shall be handed over to the applicant, and the copy marked “Duplicate” shall be retained in the concerned circle.

(4) A register in Form VR-VI shall be maintained in each circle and the details of each application referred to in sub-rule (1) shall be entered in the said register.

(5) If any contract is awarded to the contractor on the basis of such Tax Clearance Certificate, the applicant shall inform the circle in charge within seven days of award of the contract.