Section 8(4) in Kerala General Sales Tax Rules, 1963
(4)For the purpose of Sub-rule (1), the amount for which goods are sold by a dealer shall,(a)in relation to a works contract in which the transfer of property takes place in the form of goods, the whole amount payable to the dealer for carrying out such contract;(b)in relation to a works contract in which the transfer of property takes place not as goods but in some other form in which the dealer transfers all the goods involved in the execution of such contract, the whole amount payable to the dealer for carrying out such contract less the labour charges *not incurred in relation to the goods involved in the execution of the works contract, as established and proved by the contractor;(c)in relation to a works contract in which the transfer of property takes place not as goods but in some other form in which the goods supplied by the awarder are partly involved, the proportionate amount of the whole contract amount less labour charges as explained in (b) above worked out in the proportion of the cost of goods supplied by such awarder and the cost of goods supplied by the contractor or other person, be deemed to be turnover of such contractor;Provided that the amount payable for a contract for earth work alone or a contract which does not involve any transfer of goods whether in the form of goods or in some other form, shall not be deemed to be turnover for the purpose of this rule:Provided further that when a works contract extends to more than one year for its completion the turnover for each year shall be:-(i)When a system of progressive billing is stipulated for the payment of the contract amount for that much of works completed in a year; then the amount received or receivable on such bills for the year; and(ii)in the other cases the portion of work completed during that year;(iii)in the case of on-going contract on the date of commencement of these rules, the turnover for the purpose of these rules shall be the turnover of work remains to be completed which shall be computed in accordance with these rules.
