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[Cites 0, Cited by 0] [Section 10] [Entire Act]

State of Kerala - Subsection

Section 10(2) in Kerala Value Added Tax Rules, 2005

(2)
(a)In relation to a works contract in which transfer of property takes place not in the form of goods but in some other form, the taxable turnover in respect of the transfer of property involved in the execution of works contract shall be arrived at after deducting the following amount from the total amount received or receivable by the dealer for the execution of the works contract such as;
(i)labour charges for the execution of work,
(ii)charges for planning and designing and the architect's fee;
(iii)charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract, or where the machinery is owned by the contractor, the interest paid on any loan taken for the purchase of the machinery;
(iv)cost of consumables used;
(v)cost of establishment and overhead charges of the dealer to the extent it is relatable to the supply of labour and service;
(vi)profit earned by the dealer to the extent it is relatable to supply of labour and services:
Provided that notwithstanding anything contained in clause (a) when the turnover arrived at after deducting the amounts mentioned in clause (a) falls below the cost of goods transferred in the execution of works contract, an amount equal to the cost of the goods transferred in the execution of works contract together with profit, if any, shall be the taxable turnover in respect of such works contract.Explanation. - For the purpose of the proviso, cost of goods means the price of goods together with all expenses incurred by the contractor in bringing the goods to the work site.
(b)Where the actual turnover in relation to a works contract, in which the transfer of goods takes place not in the form of goods but in some other form, is not ascertainable from the books of accounts of the dealer or where the dealer has not maintained any accounts, the total turnover in respect of such works contract shall be computed after deducting labour and other charges as given in the Table below from the total amount of contract.
Sl.No. Type of works contract Labour or other charges as a Percentage of thevalue of the works contract
(1) (2) (3)
1 Electrical Contracts 20
2 All structural contracts 30
3 Sanitary contracts 20
4 Tyre re-treading contract 50
5 Dyeing and Textile Printing contracts 50
6 Sculptural contracts or contracts relating toArts 70
7 Refrigeration, air conditioning or othermachinery, rolling shutters, cranes installation contracts 15
8 Installation of plant and machinery 15
9 Laying of pipes 20
10 Installation of elevators (lifts) and escalators 15
11 Installation of air conditioners and air coolers 10
12 Fixing of marble slabs, polished granite stonesand tiles (other than mosaic tiles). 25
13 Annual maintenance contract 50
14 All other contracts 25
Explanation. - No deduction as per the above Table shall be allowed out of the total contract amount for the supply and installation of any machinery, equipment or any other system, where the goods involved are transferred in the "knocked down" condition (unassembled form) and assembled and installed, and the skill and labour employed for installation is only incidental to the supply of such goods.