Section 90 : Statement and payment of tax withheld

1) Each person who has to withhold tax has to submit to the Department a statement in such mode and format as specified by the Department within twenty-five days of the expiration of each month.

2) The person withholding tax shall pay to the Department the amount of tax withheld or deemed to be withheld pursuant to sub-section (3), along with the statement referred to in sub-section (1), within the time limit referred to in sub-section (1).

3) Even though the person liable to withhold tax has not withheld tax pursuant to Sections 87, 88, 88A or 89, the tax shall be deemed to be withheld at the time when it has to be withheld.

4) The person withholding tax shall pay the amount of tax withheld pursuant to Sections 87, 88, 88A or 89 or deemed to be withheld pursuant to sub-section (3); and if sub-section (5) is applicable, the person subject to tax withholding shall pay the tax within twenty-five days after the period referred to in sub-section (1).

4A) The person paying tax on the basis of the transaction pursuant to sub-section (4a) of Section 4 of the Act shall pay the tax withheld under Chapter 17 at the time of payment of the instalment tax.

5) The person subject to withholding tax and the person withholding  tax shall be jointly and individually responsible to pay such tax amount to the Department in the following circumstances:

a) If the person withholding tax does not withhold tax from any payment pursuant to Sections 87, 88, 88A or 89, and

b)If the person withholding tax does not pay to the Department the amount of tax deemed to be withheld pursuant to sub-section (3) within the date on which tax has to be paid pursuant to sub-section (4).

6) If the person withholding tax withholds tax and pays it to the Department pursuant to Sections 87, 88, 88A or 89 and the person subject to tax withholding makes any claim as to that payment subject to tax withholding, that amount shall be treated as if it were paid to the person subject to tax withholding.

7) If the person withholding tax pays to the Department the amount of tax not withheld pursuant to Sections 87, 88, 88A or 89, he or she may recover the amount equal to the amount of tax so paid from the person subject to tax withholding.

8) If the Department believes that any person has not submitted a return or pay tax required to be submitted or paid under sub-section (1) or (2) or there exists the circumstance referred to in sub-section (5) in the case of any person, it may issue an order to pay the amount not paid or the amount paid less and the interest referred to in Section 119 and charge referred to in Section 120 if advance tax is not deducted in the payment subject to the advance tax deduction.

Provided that, prior to issuing such an order, a written notice setting out an appropriate reason shall be given to submit evidence in defence in respect of such order within the time limit of fifteen days.