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TMI BlogNotification DVAT (Third Amendment) Rules, 2013.X X X X Extracts X X X X X X X X Extracts X X X X ..... Works Contract (1) In the case of turnover arising from the execution of a works contract, the amount included in taxable turnover is the total consideration paid or payable to the dealer under the contract and exclude (i) the charges towards labour, services and other like charges; and (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 above referred charges to the satisfaction of the Commissioner. Explanation. The term 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, other works of similar nature, and the collaboration agreements or joint development agreements or similar other agreements/arrangements between the land-owner(s) and the contractor(s)/builder(s)/ developers/ collaborators/ similar other persons by whatever 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 ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried on by him for the intended purchaser shall be calculated separately as per sub rule (1) of this rule. (1B) In case of works contract falling under sub-rule (1A), tax shall be payable at the time of incorporation of goods in the execution of works contract by the contractor. (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 similar expenses relatable to supply of labour and services; (vii) profits earned by the contractor to the extent it is relatable to supply of labour and services subject to furnishing of a profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 Laying underground surface pipelines, cables or conduits. Thirty percent 17 Dyeing and printing of textiles. Thirty percent 18 Supply and erection of weighing machines and weighbridges. Fifteen percent 19 Painting, polishing and white washing. Thirty percent 20 Book-binding Fifty Percent 21 Textile processing such as dying, fabrication, tailoring, embroidery and other similar activities where textile is supplied by the contractee Fifty percent 22 Electro plating, electro galvanizing, anodizing, powder coating and other similar activities Fifty percent 23 Re-treading of old tyres Forty Percent 24 All other contracts not specified from Sl. No. 1 to 23 above. Twenty percent * Twenty five percent of total value of the contract, excluding the cost of land transferred, if any, as determined under this Rule. (3) For the purpose of sub-rule (1), the cost of land, if any, in a civil works contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of value under this sub-rule. Provided further that where land has been valued at circle rate and the value of conveyance/sale deed with the intended purchaser exceeds the circle rate, then the difference between the two shall be proportionately divided between the value of land and the works contract (comprising material and services). For example, in case of composite works contract, circle rate of land is Rs.2 crore and circle rate of construction is Rs.1 crore respectively, and the consolidated value of sale deed (inclusive of land and cost of construction) is Rs.3.60 crores. Difference of Rs.0.60 crore shall be divided in the ratio of 2:1; and thus, value of land for the purpose of this sub-rule shall be Rs.2.40 crores. Explanation 1: The term Builder for the purpose of this sub-rule means the person who undertakes the construction of property, either as owner of the land or under an agreement of power of attorney with the land owner or under some other arrangement, and transfers the property to some other person before completion of construction for a consideration, which may be received by the builder either as a composite sum or under separate agreements for lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the intended purchaser in relation to (i) above; (iii) the builder shall be eligible to deduct labour, services, other like charges in relation to (i) above in the tax period when output tax becomes payable; and (iv) the builder may claim input tax credit under section 9 in relation to turnover of sale stated in (i) above in that tax period on the basis of separate books of accounts maintained for that property. 3. Insertion of new rule 44A.- In the principal Rules, after rule 44, the following shall be inserted, namely:- 44A. A retail invoice issued under sub-section (4) of Section 50 of the Act by a dealer, who has elected to pay tax under section 16 of the Act (including schemes notified there under), besides, containing particulars specified in sub-section (5) of the said section, shall also contain the words Composition Dealer (Not eligible to charge VAT on Bill Amount) at the top of the invoice. . 4. Amendment of rule 22 .- In the principal Rules, in rule 22 , for sub-rule (2), the following shall be substituted, namely.- (2) A person required to pay security under sub-section 4 of section 60 for de-sealing or release of any premises includi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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