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[Cites 0, Cited by 92] [Entire Act]

State of Tamilnadu - Section

Section 6 in Tamil Nadu Value Added Tax Act, 2006

6. Payment of tax at compounded rate by works contractor.

(1)Notwithstanding anything contained in this Act, every dealer, [other than the dealer who purchases [or receives] [These words have been added by Section 3 (i) of the Amendment Act (21 of) 2007, with effect from 1st January 2007.] goods from outside the State or imports goods from the outside the Country] may, at his option, instead of paying tax in accordance with section 5, pay, on the total value of the works contract executed by him in a year, tax calculated at the following rate, namely:-
(i) Civil works contract: two per cent of the total contract value of the civil worksexecuted;
(ii) Civil maintenance works contract : two per cent of the total contract value of the maintenanceworks executed;
(iii) All other works contract contracts: [Five] [Substituted for the words 'four' by Section 2 of the Amendment Act (4 of) 2012,notified in No. II (2)/CTR/145©/2012-GO.No.31 dated 10th March 2012, to come intoforce from that date]per cent of the total value of the works executed.
(2)Any dealer, who executes works contract, may apply to the assessing authority along with the first monthly return for the financial year or in the first monthly return after the commencement of the works contract, his option to pay the tax under sub-section (1) and shall pay the tax during the year in the monthly instalments and for this purpose, he shall furnish such return within such period and in such manner as may be prescribed.
(3)The option exercised under sub-section (1) shall be final for that financial year.
(4)A dealer, exercising option under sub-section (1) shall, so long as the option remains in force, not be required to maintain accounts of his business under this Act or the rules made there under except the records in original of the works contract, extent of their execution and payments received or receivable in relation to such works contract, executed or under execution.
(5)The dealer, who pays tax under this section, shall not [collect any amount by way of tax or purporting to be by way of tax and shall not ] [These words have been added by Section 3 (i) of the Amendment Act (21 of ) 2007, with effect from 1st January 2007.] be entitled to input tax credit on the goods purchased by him.Explanation. - For the purpose of this section "civil works contract" includes civil works of construction of new building, bridge, road, runway, dam or canal including any lining, tiling, painting or decorating which is an inherent part of the new construction and any repair, maintenance, improvement or up gradation of such civil works by means of fixing and laying of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing, partition, wall panelling, interior decoration, false ceiling, carpeting and extra fittings, or any manner of improvement on an existing structure