- 58. Determination of sale price and of purchase price in respect of sale by transfer of property in goods (whether as good or in some other form) involved in the execution of a works contract.-
- (1) The value of the goods at the time of the transfer of property in the goods (whether as goods or in some other form) involved in the execution of
a works contract may be determined by effecting the following deductions from the value of the entire contract, in so far as the amounts
relating to the deduction pertain to the said works contract:
- (a) labour and service charges for the execution of the works ......;
- (b) amounts paid by way of price for sub-contract,if any, to sub-contractors;
- (c) charges for planning, designing and architects fees
- (d) charges for obtaining on hire or otherwise, machinery and tools for the execution of the works contract;
- (e) cost of consumables such as water, electricity, fuel used in the execution of works contract, the property in which is not transferred in the course of execution of the works contract
- (f) cost of establishment of the contractor to the extent to which it is relatable to supply of the said labour and service
- (g) other similar expenses relatable to the said supply of labour and services, where the labour and services are subsequent to the said transfer of property;
- (h) profit earned by the contractor to the extent it is relatable to the supply of said labour and services:
- Provided that where the contractor has not maintained accounts which enable a proper evaluation of the different deductions as above or where the Commissioner finds that the accounts maintained by the contractor are not sufficiently clear or intelligible, the contractor or, as the case may be, the Commissioner may in lieu of the deductions as above provide a lump sum deduction as provided in the Table below and determine accordingly the sale price of the goods at the time of the said transfer of property.
- TABLE
- Sr. No.
|
- Type of Works Contract
|
- *Amount to be deducted from the contract price (expressed as a percentage of the contract price)
|
- (1)
|
- (2)
|
- (3)
|
- 1
|
- Installation of plant and machinery
|
- Fifteen percent.
-
|
- 2
|
- Installation of air conditioners and air coolers.
|
- Ten percent..
|
- 3
|
- Installation of elevators (lifts) and escalators.
-
|
- Fifteen percent.
|
- 4
|
- Fixing of marble slabs, polished granite stones and tiles (other than mosaic tiles)
|
- Twenty five percent.
|
- 5
|
- Civil works like construction of buildings, bridges, roads, etc.
|
- Thirty percent.
|
- 6
|
- Construction of railway coaches on under carriages supplied by Railways.
-
|
- Thirty percent.
|
- 7
|
- Ship and boat building including construction of barges, ferries, tugs, trawlers and dragger.
|
- Twenty percent.
|
| 8 |
-
- Fixing of sanitary fittings for plumbing, drainage and the like.
|
-
- Fifteen percent.
|
| 9 |
- Painting and polishing.
|
- Twenty per cent.
|
- 10
|
- Construction of bodies of motor vehicles and construction of trucks.
|
- Twenty per cent.
|
- 11
|
- Laying of pipes.
|
- Twenty per cent.
|
- 12
|
- Tyre re-treading.
|
- Forty per cent.
|
- 13
|
- Dyeing and printing of textiles.
|
- Forty per cent.
|
- 14
|
- Annual Maintenance contracts.
|
- Forty per cent
|
- 15
|
- Any other works contract.
|
- Twenty five per cent
|
- Note :The percentage is to be applied after first deducting from the total contract price, the quantum of price on which tax is paid by the sub-contractor, if any, and the quantum of tax separately charged by the contractor if the contract provides for separate charging of tax.
-
- 1A) Deleted
The cost of the land shall be determined in accordance with the guidelines appended to the Annual Statement of Rates prepared under the provisions of the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, as applicable on the 1st January of the year in which the agreement to sell the property is registered:
Provided that, deduction towards cost of land under this sub-rule shall not exceed 70% of the agreement value.
(2) The value of goods so arrived at under sub-rule(1) shall, for the purposes of levy of tax, be the sale price or, as the case may be, the purchase price relating to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract.
|