42.31.2133 ADDITIONAL REPORT AND WITHHOLDING REQUIREMENTS IN CASE OF SUBLET CONTRACT
(1) Whenever a contract
for the performance of public construction or reconstruction has been awarded
by any governmental agency, including the federal government, and a contractor
sublets a contract in connection with such construction or reconstruction, the
contractor awarding the subcontract must complete and file with the department
of revenue a contract award report (form PC-1) which must contain the
information specified in ARM 42.31.2131.
contractor subletting a contract is also required to withhold 1% of the amount
due his subcontractor but will not transmit such amount to the department. He will complete the gross receipts
withholding report (form PC-2) checking the box marked "Subcontractor
Allocation." The amount withheld
(amount shown on line 8 on form PC-2) will then be credited to the
subcontractor and deducted from the original 1% which was withheld from the
prime contractor. For failure to file
the allocation report within the required 30-day period, provided for in ARM
42.31.2132, a penalty of 10% of the tax withheld from the subcontractor shall
be due from the prime contractor.
History: Sec. 15-1-301, MCA; IMP, Sec. 15-50-101, 15-50-205, and 15-50-206, MCA; Eff. 12/31/72; AMD, Eff. 5/5/77; AMD, 1995 MAR p. 2854, Eff. 12/22/95; AMD, 2000 MAR p. 3569, Eff. 12/22/00.