Deduction for charges towards labour, service and other like charges.
30. (1) A dealer who is liable to pay tax under section 14, may, for the purpose of determining his taxable contractual transfer price on which tax is payable under subsection (1) of section 18 during any period, deduct under clause (d) of sub-section (2) of that section, from contractual transfer price received or receivable, the following:- (a) labour charges for execution of works contract; (b) charges for planning, designing and architects fees; (c) charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract; (d) cost of consumables such as water, electricity, fuel etc. used in the execution of works contract, the property in which is not transferred in the course of execution of the works contract; (e) cost of establishment of the contractor to the extent it is relatable to supply of labour and services; and (f) other similar expenses relatable to supply of labour and services; and (g) profit earned by the contractor to the extent it is relatable to supply of labour and services subject to furnishing of profit and loss account of the works site. (2) In the cases where the amounts referred to in clause (a) to clause (g) of sub-rule (1) are not ascertainable from the accounts of a dealer, or if a dealer does not maintain proper accounts, the taxable contractual transfer price may, at the option of such dealer, be determined after deducting the amount, calculated at the percentages specified in column (3) of the following table for different types of contracts, and the application of different rates of tax on such percentages as mentioned in column (4) of the table, of the taxable contractual transfer price, so determined :-
Serial No.
Type of contract.
Percentage of
Percentage of
deduction from
total value of
the contractual
contract taxable
transfer price.
@
(1)
(2)
(3)
(4)
4%
12.50%
1
Fabrication and installation
25
25
50
of plant and machinery
2
Fabrication and erection of
15
45
40
structural works of iron and
steel including Fabrication,
supply and erection of iron
trusses, purloins and the like.
3
Fabrication and installation
15
25
60
of cranes and hoists.
4
Fabrication and installation of
15
20
65
elevators (lifts) and escalators.
5
Fabrication and installation of
15
45
40
rolling shutters and collapsible
gates.
6
Civil works like construction of
25
20
55
buildings, bridges, roads, dams,
barrages, canals and diversions.
7
Installation of doors, door frames,
20
10
70
windows, frames and grills.
8
Supply and fixing of tiles, slabs,
20
Nil
80
stones and sheets.
9
Supply and installation of air
15
5
80
conditioners and air coolers.
10
Supply and installation of air
15
5
80
conditioning equipment including
deep freezers, cold storage plants,
humidification plants and de-
11
Supply and fitting of electrical goods,
15
5
80
supply and installation of electrical
equipments including transformers.
12
Supply and fixing of furniture and
20
5
75
fixtures, partitions including
contracts for interior decorators and
false ceiling.
13
Construction of railway coaches
20
50
30
and wagons.
14
Construction or mounting of
20
30
50
bodies of motor vehicle and
construction of trailers.
15
Sanitary fitting for plumbing
25
15
60
drainage or sewerage.
16
Laying underground surface
30
10
60
pipeline, cables and conduits.
17
Dying and printing of textiles.
30
Nil
70
18
Supply and erection of weighing
15
30
55
machines and weigh bridges.
19
Painting, polishing and white
30
Nil
70
washing.
20
All other contracts not specified
20
15
65
from serial No. 1 to 19