Rajasthan Sales Tax Act,1994
Section 67. Penalty on awarders
(1) Where an awarder of a works contract fails to deduct the amount in lieu of tax from the bill of a contractor as prescribed, or after having deducted such amount from such bill does not deposit the same in the prescribed manner and time, he shall be liable to pay tax deducted by him and a penalty for each violation, which may extend up to Rs. 1000 in the case of non-deduction, and a penalty at the rate of two per cent per month on the amount so deducted but not deposited for the period during which such default continues.
(2) The assessing authority of the contractor concerned shall be empowered to recover lax and to impose penalty under sub-section (1).