Manner and time of payment of net tax and interest payable, if any, under subsection
(1) and sub-section (3) of section 33, before furnishing quarterly returns.

40. (1) Subject to the sub-rule (2) of this rule, rule 37 and rule 42, every dealer who is required to furnish returns quarterly according to rule 34 shall-

(a) pay into the appropriate Government Treasury under the appropriate challans showing separately the amount of net tax and interest, if any, payable according to such return for each of the first two months of each quarter within twenty one days from the expiry of each English Calendar month; and

(b) pay into the appropriate Government Treasury under the appropriate challans showing separately the balance amount of net tax and interest, if any, which remains after deducting the amount of net tax and interest, if any, paid for the first two months as referred to in clause (a) from the total amount of net tax and interest, if any, payable according to return for such quarter before furnishing such returns by him under rule 34.

(2) Every dealer making payment of net tax and interest, under sub-rule (1) shall submit the copy of receipted challan to the appropriate assessing authority within the next English Calendar month from the expiry of each month:

Provided, that if no net tax or interest, is payable by a dealer under sub-rule (1) or the receipted challan has not been received from the appropriate Government Treasury, such dealer shall furnish to the appropriate assessing authority a statement within the next English Calendar month from the expiry of each month, containing inter alia, his address and certificate of registration number and details of payments like the date and amount of payment, the name of Treasury in which and the month in respect of which payment has been made or the fact that no net tax or interest, is payable by him for such month.

(3) Notwithstanding anything contained in sub-rule (1), where the dealer pays the net tax referred to therein by instalments, he shall pay the corresponding interest at the time of making payment of such net tax and furnish the statement, showing details of calculation of the amount of interest payable, along with the receipted challan each time as a proof of payment of such interest.