TMI BlogWorks contract (Section 5(2))X X X X Extracts X X X X X X X X Extracts X X X X ..... milar other persons by whatever name called for construction of complex or property. (1A) In case the civil works contract mentioned in sub-rule (1) are of the nature wherein the agreement executed between the land owner(s) and contractor(s) or similar other agreements/ arrangements is of the nature of collaboration or joint development where the contractor(s) constructs the building/units and consideration for the construction is given by the land owner in the form of share in the land with or without additional money exchange, the value of works contract carried out by the contractor(s) for the land owner shall be highest of the following amounts: (i) Actual value of construction, including profit, transferred by the contractor to the land-owner in accordance with the books of accounts maintained by the contractor. (ii) Where proportionate land is transferred by the land-owner to the contractor by executing a separate conveyance/sale deed, the value stated in the deed for the purpose of payment of stamp duty as reduced by consideration paid by the contractor to the land owner through account payee cheque/ draft/ pay order/ electronic transfer, if any. (iii) On the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar expenses relatable to supply of labour and services; (vii) profits earned by the contractor to the extent it is relatable to supply of labour and services subject to furnishing of a profit and loss account of the works sites: PROVIDED that where amount of charges towards labour, services and other like charges are not ascertainable from the books of accounts of the dealer, the amount of such charges shall be calculated at the percentages specified in the following table :- TABLE: PERCENTAGES FOR WORKS CONTRACTS Sl. No. Type of contract Labour, service and other like charges are percentage of total value of the contract 1 Fabrication and installation of plant and machinery. Twenty five percent 2 Fabrication and erection of structural works of iron and steel including fabrication, supply and erection of iron trusses, purloins and the like. Fifteen percent 3 Fabrication and installation of cranes and hoists. Fifteen percent 4 Fabrication and installation of elevators (lifts) and escalators. Fifteen percent 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of the contract, excluding the cost of land transferred, if any, as determined under this Rule. (3) For the purpose of sub-rule (1), the cost of land, if any, in a civil works contract carried on by the builder for the intended purchaser, shall be determined in the following manner: (a) Where separate conveyance/sale deed of the land has been executed between the builder and the intended purchaser, the consideration amount of land stated in that deed; (b) Where separate conveyance/sale deed of the land has not been executed for transfer of land between the builder and the intended purchaser, then the value of land in the value of composite works contract inclusive of land may be arrived at on any of the following basis:- (i) Where proportionate land is transferred by the land-owner to the builder by executing a conveyance/sale deed: On the basis of rate of land arrived at from such deed for the purpose of payment of stamp duty. (ii) Where clause (i) is not applicable, on the basis of rate of land arrived at by adding the amount paid by the builder through account payee cheque/draft/pay order/electronic transfer to the land-owner towards the land rights and value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd transfers the property to some other person before completion of construction for a consideration, which may be received by the builder either as a composite sum or under separate agreements for land and construction. The term builder shall also include the land-owner(s) who transfers the property to the intended purchaser before completion of construction. Explanation 2: The term intended purchaser for the purpose of this sub-rule means the person who agrees to buy the property before completion of construction and pays the consideration, in full or part, before such completion. Explanation 3: For the purpose of this sub-rule, construction shall be deemed to be completed at the time of issuance of completion certificate by the competent authority, or at the time and in the manner notified by the Government for this purpose. (c) In the case of works contract of civil nature where the payment of charges towards the cost of land, if any, is not ascertainable in accordance with the preceding clauses of this sub-rule, the amount of such charges shall be calculated @ 30% of the total value of the contract except in the case of construction of commercial buildings or complex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , services and other like charges to the satisfaction of the Commissioner. B. In sub-rule (2) of Rule 3, effectively, all other provisions, except the following, remain the same (a) clause (v) earlier read as, cost of establishment of the contractor to the extent it is relatable to supply of labour and service. (b) in the table sl. No. 6 earlier read as, Civil work like construction of building, bridges, C. Sub-rule (3) of Rule 3 has now been inserted. 2. Substituted vide NOTIFICATION No. F.3(16)/Fin.(Rev-I)/2013-14/dsVI/785 dated 20.09.2013 , before it was read as under, 1 [3. Works contract (1) In case of turnover arising from the execution of the works contract, the amount representing the taxable turnover shall be the value at the time of transfer of property in goods (whether as goods or in some other form) involved in the execution of work contract and shall exclude - (i) the charges towards labour, services and other like charges; and (ii) the charges towards cost of land, if any, in civil works contracts; subject to the dealer's maintaining proper records such as invoice, voucher, challan or any other document evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gates Fifteen percent 6. Civil works. Twenty five percent* 7 Installation of doors, doorframes, windows, frames and grills 9 Supply and installation of air conditioners and air coolers. Fifteen percent Twenty percent 8 Supply and fixing of tiles, slabs, stones and sheets. Twenty percent 9 Supply and installation of air conditioners and air coolers Fifteen percent 10 Equipment including deep freezers, cold storage plants, humidification plants and de-humidors. Fifteen percent 11 Supply and fitting of electrical goods, supply and installation of electrical equipments including transformers. Fifteen percent 12 Supply and fixing of furniture and fixtures, partitions including contracts for interior decoration and false ceiling. Twenty percent 13 Construction of Railway coaches and wagons on under carriages supplied by Railway. Twenty percent 14 Construction or mounting of bodies of motor vehicle and construction of trailers. Twenty percent 15 Sanitary fitting for plum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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