Section 4(7) in The Andhra Pradesh 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 for '12.5%' by Act 9 of 2010, w.e.f. 26-4-2010, Vide G.O.Ms.No.366, Revenue (CT-II) Department dated 24-4-2010. ] 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] [[Substituted by Act 21 of 2011, w.e.f. 15-9-2011, Prior to its substitution it read as below:'(b) any dealer executing any works contract for the Government or local authority may opt to pay tax by way of composition at the rate of 4% on the total value of the contract executed for the Government or local authority [xxx]'.]][5%] [Substituted for '4%' by Andhra Pradesh Act No. 12 of 2012, w.e.f. 14-9-2011.] of the total amount received or receivable by himself towards execution of the works contract either by himself or through 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.];(c)[xxx] [[Omitted. by Act 21 of 2011, w.e.f. 15-9-2011, Prior to its omission it read as below:'(c) any dealer executing works contracts other than for Government and local authority may opt to pay tax by way of composition at the rate of 4% of [xxx] of the total consideration received or receivable for any specific contract subject to such conditions as may be prescribed.]] ;"[(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] [[Substituted by Act 21 of 2011, w.e.f. 15-9-2011, Prior to its substitution it read as below:'(d) any dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may opt to pay tax by way of composition at the rate of 4% of twenty five percent (25%) of the consideration received or receivable or the market value fixed for the purpose of stamp duty whichever is higher subject to such conditions as may be prescribed.]], [5%] [Substituted for '4%' by Andhra Pradesh Act No. 12 of 2012, w.e.f. 14-9-2011.] 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 sub-contractor 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;[xxx] [[Omitted. by Act 21 of 2011, w.e.f. 15-9-2011, Prior to its omission it read as below:'(e) any dealer having opted for composition under [clauses (b) or (c) or (d)], purchases or receives any goods from outside the State or India or from any dealer other than a Value Added Tax dealer in the State and uses such goods in the execution of the works contracts, such dealer shall pay tax on such goods at the rates applicable to them under the Act and the value of such goods shall be excluded [from the total turnover] for the purpose of computation of turnover on which tax by way of composition at the rate of four per cent (4%) is payable.]];(f)[any dealer registered or is liable to be registered] [Substituted for 'any dealer who is liable to be registered' by Act 21 of 2011, w.e.f. 15.9.2011.] for TOT 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% on the total consideration received or receivable subject to such deductions as may be prescribed.[xxx] [Proviso omitted by Act No. 5 of 2007, w.r.e.f. 1-9-2006.](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 interstate 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] [Added by Act No. 5 of 2007, w.r.e.f. 1-9-2006.];(h)no tax shall be payable under [clause (a)] [Substituted by Act No. 21 of 2011, prior to substitution it read as below: 'clauses (a) or (b) or (c)' w.e.f. 15-9-2011.] 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 VAT dealer under the Act and the turnover of such amount is included in the return prescribed filed by such sub-contractor.(i)[xxx] [Omitted. by Act 21 of 2011, w.e.f. 15-9-2011, Prior to its omission it read as below: '(i) no tax shall be payable under clause (d) of this sub-section on the turnover relating to the consideration received as a sub-contractor if the main contractor opted to pay tax by way of composition subject to the condition that the sub¬contractor shall pay tax in respect of any goods purchased or received from outside the State of Andhra Pradesh or from any person other than a Value Added Tax dealer in the State on the value of such goods at the rates applicable to them under the Act.]
