9911796707
TMI BlogWorks contract (Section 5(2))X X X X Extracts X X X X X X X X Extracts X X X X ..... er name called for construction of complex or property. (1A) In case the civil works contract mentioned in sub-rule (1) are of the nature wherein the agreement executed between the land owner(s) and contractor(s) or similar other agreements/ arrangements is of the nature of collaboration or joint development where the contractor(s) constructs the building/units and consideration for the construction is given by the land owner in the form of share in the land with or without additional money exchange, the value of works contract carried out by the contractor(s) for the land owner shall be highest of the following amounts: (i) Actual value of construction, including profit, transferred by the contractor to the land-owner in accordance with the books of accounts maintained by the contractor. (ii) Where proportionate land is transferred by the land-owner to the contractor by executing a separate conveyance/sale deed, the value stated in the deed for the purpose of payment of stamp duty as reduced by consideration paid by the contractor to the land owner through account payee cheque/ draft/ pay order/ electronic transfer, if any. (iii) On the basis of circle rate of proportionate area o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its earned by the contractor to the extent it is relatable to supply of labour and services subject to furnishing of a profit and loss account of the works sites: PROVIDED that where amount of charges towards labour, services and other like charges are not ascertainable from the books of accounts of the dealer, the amount of such charges shall be calculated at the percentages specified in the following table :- TABLE: PERCENTAGES FOR WORKS CONTRACTS Sl. No. Type of contract Labour, service and other like charges are percentage of total value of the contract 1 Fabrication and installation of plant and machinery. Twenty five percent 2 Fabrication and erection of structural works of iron and steel including fabrication, supply and erection of iron trusses, purloins and the like. Fifteen percent 3 Fabrication and installation of cranes and hoists. Fifteen percent 4 Fabrication and installation of elevators (lifts) and escalators. Fifteen percent 5 Fabrication and installation of rolling shutters and collapsible gates. Fifteen percent 6 Civil works. Twenty five percent* 7 Installation of doors, doorframes, windows, frames and grills. Twenty percent 8 Supply and fixing of tiles, slabs, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of land arrived at from such deed for the purpose of payment of stamp duty. (ii) Where clause (i) is not applicable, on the basis of rate of land arrived at by adding the amount paid by the builder through account payee cheque/draft/pay order/electronic transfer to the land-owner towards the land rights and value of construction transferred by the builder to the land-owner determined as per sub-rule (1A). To illustrate, land-owner and builder enter into an agreement, where builder would build four units, which would be shared equally between them. In addition, builder pays Rs. 1 crore to the land owner. Total construction cost for four flats is Rs. 4 crores. Here, builder transfers the value of construction worth Rs. 2 crores [Rs.4 crores divided by two, since 50% share in the construction is transferred to the land-owner]. In this case, value of land transferred by the land-owner is: Rs. 1 crore + Rs. 2 crores = Rs. 3 crores; and total value of land transferred by the builder to the intended purchasers for his share of the land shall also be Rs. 3 crores (Rs. 1.5 crs. per flat if there are two intended purchasers). (iii) In all other cases where clauses (i) and (ii) are not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the payment of charges towards the cost of land, if any, is not ascertainable in accordance with the preceding clauses of this sub-rule, the amount of such charges shall be calculated @ 30% of the total value of the contract except in the case of construction of commercial buildings or complexes where it shall be calculated @ 50% of the total value of the contract. (d) In the case of works contract of civil nature where only a part of the total constructed area is being transferred, the charges towards the cost of land shall be calculated on a pro-rata basis through the following formula: Proportionate super area X Value of land as determined in this sub-rule Total plot area X Floor Area Ratio Explanation1.- Proportionate super area for the purpose of this clause means the covered area booked for transfer and the proportionate common constructed area attributable to it. Explanation 2.- Floor Area Ratio = Total constructed area/ Total plot Area (4) In the case of works contract of civil nature where only a part of total constructed area is being transferred, the deduction towards labour, services and other like charges mentioned in sub-rule (2) and input tax credit under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) the charges towards cost of land, if any, in civil works contracts; subject to the dealer's maintaining proper records such as invoice, voucher, challan or any other document evidencing payment of referred charges to the satisfaction of the Commissioner. Explanation .- Civil works contracts for the purpose of this rule shall include construction of building or complexes - residential or commercial, bridges, flyovers, dams, barriers, canals, diversions and other works of similar nature. (2) For the purpose of sub-rule (1), the charges towards labour, services and other like charges shall include: (i) labour charges for execution of works; (ii) charges for planning and architects fees; (iii) charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract; (iv) cost of consumables such as water, electricity, fuel, etc. used in the execution of the works contract the property in which is not transferred in the course of execution of a works contract; (v) cost of establishment of the contractor including cost of marketing, finance expenses and securities deposits to the extent it is relatable to supply of labour and services; (vi) other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other contracts not specified from Sl. No. 1 to 19 above. Twenty percent *Twenty five percent of total value of the contract excluding the cost of land transferred, if any. (3) (a) In the case of works contract of civil nature where the payment of charges towards the cost of land, if any, is not ascertainable from the books of accounts of the dealer, the amount of such charges shall be calculated @ 30% of the total value of the contract except in the case of construction of commercial buildings or complexes where it shall be calculated @ 50% of the total value of the contract. (b) In the case of works contract of civil nature where only a part of the total constructed area is being transferred, the charges towards the cost of land shall be calculated on a pro-rata basis by the following formula:- Proportionate super area X Indexed cost of acquisition of land Total plot area X Floor Area Ratio Explanation .- Proportionate super area for the purpose of this clause means the covered area booked for transfer and the proportionate common constructed area attributable to it. (c) In the case of work contract of civil nature where only a part of total constructed area is being transferred, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
