Section 4(7) in Telangana Value Added Tax Act, 2005
(7)Notwithstanding anything contained in the Act,-(a)every dealer executing works contract shall pay tax on the value of goods at the time of incorporation of such goods in the works executed at the rates applicable to the goods under the Act:Provided that where accounts are not maintained to determine the correct value of goods at the time of incorporation such dealer shall pay tax at the rate [specified in Schedule-V] [Substituted by Act No.9 of 2010.] on the total consideration received or receivable subject to such deductions as may be prescribed;(b)[ Every dealer executing works contract may in lieu of the amount of tax payable by him under clause (a) opt to pay by way of composition [at the rate of five percent (5%)] [Substituted by Act No.21 of 2011.] of the total amount received or receivable by himself towards execution of the works contract either by himself or though sub-contractor subject to such conditions as may be prescribed:Provided that the sub-contractor, executing works contract on behalf of the contractor, who opts to pay tax under this clause, shall be exempted from levy of tax.] [Added by Act No.34 of 2006.](c)[ [***]] [Clause (c) omitted by Act No.21 of 2011.](d)[ Every dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may, in lieu of the amount of tax payable by him under clause (a) opt to pay tax by way of composition [at the rate of five percent (5%)] [Substituted by Act No.21 of 2011.] on twenty five percent (25%) of the amount, received or receivable towards the composite value of both the land and building or the market value fixed therefor for the purpose of stamp duty, whichever is higher, subject to such conditions as may be prescribed:Provided that, no tax shall be payable by the subcontractor of a works contractor, who opts to pay and paid tax under this clause on the turnover relating to the amount received as a sub-contractor from such main contractor towards the execution of works contract, whether wholly or partly, subject to the production of evidence to prove that such main contractor has exercised such option in respect of the specific work and subject to such other conditions as may be prescribed.](e)[ [***]] [Clause (e) omitted by Act No.21 of 2011.](f)[] [Existing clause (e) renumbered as (f) and second proviso is added by Act No.23 of 2005.] [any dealer registered or is liable to be registered] [Substituted by Act No.21 of 2011.] for Turnover Tax and executing any works contracts shall pay tax at the rate of 1% on total value of the goods at the time of incorporation of the goods used:Provided that where accounts are not maintained to determine the correct value of the goods at the time of incorporation, such dealers shall pay tax at the rate of 1% the total consideration received or receivable subject to such deductions as may be prescribed;][***] [Second proviso omitted by Act No.5 of 2007.](g)[ notwithstanding anything contained in clauses (a) to (f) above, no tax shall be leviable on the turnover of transfer of property in goods whether as goods or in some other form involved in the execution of works contract, if such transfer from the contractor to the contractee constituted a sale in the course of inter-State trade or commerce under section 3 or a sale outside the State under section 4, or a sale in the course of import or export under section 5 of the Central Sales Tax Act, 1956; [Clauses (g) and (h) added by Act No.5 of 2007.](h)no tax shall be payable under [clause (a)] of this sub-section on the turnover relating to amounts paid to a sub-contractor as consideration for the execution of works contract whether wholly or partly subject to the production of proof that such sub-contractor is registered as a Value Added Tax dealer under the Act and the turnover of such amount is included in the return prescribed filed by such sub-contractor.](i)[ [***]] [Clause (i) omitted by Act No.21 of 2011.]
