Section 29(2) in Bihar Value Added Tax Rules, 2005
(2)Such deduction shall be made from payments purporting to be the full or part payment of the sale price, being made in respect of all contracts executed, whether in part or in full, after commencement of this Act:Provided that no deduction shall be made on account of the payment pertaining to the following -(a)Labour charges for execution of the works contract,(b)Amount paid to sub-contractor on account of labour and services,(c)Charges for planning, designing and architects fees,(d)Charges for obtaining on hire machineries and tools used in the execution of the works contract,(e)Cost of consumables such as water, electricity, fuels, etc. used in execution of the works contract the property in which is not transferred in the course of execution of a works contract,(f)Cost of establishment of the contractor to the extent it is relatable to supply of labour and services,(g)Other similar expenses relatable to supply of labour and services,(h)Profit earned by the contractor to the extent it is relatable to the supply of labour and services, and(i)Goods or transactions exempted under section 6 or section 7 of the Act.Provided further that the amount deducted during a year shall be refunded, in accordance with the provisions of section 68, to the person from whose bills such deductions are made if he does not become liable to tax during the year during which the said deductions were made:Provided also that no such refund shall be made unless the person claiming the refund files, before the Circle In-Charge, an application in form A-XIII after the end of the financial year during which the deduction or deductions, as the case may be, were made.
