Office of the Commissioner of

Commercial Taxes, Kerala,

Tax Towers, Killippalam, Karamana P.O>,

Thiruvananthapuram.

Sub:- Works Contract - Filing of Form 10B Quarterly Return - procedure - Instructions Issued

Ref: Amendment Ordinance No. 21 of 2014 dated 03/09/2014

Consequent to the amendments made to Works Contract rate of tax, several dealers in works contract have represented to the Department that there is ambiguity in filing of e-returns. In the circumstances the following instructions are issued with regard to filing of works contract returns.

Procedure for declaring the turnover for the 2nd Quarter, 2014 for those contracts having receipts upto 2nd September 2014, and receipts from 3rd September, 2014

First Step (Receipts for the period upto 2nd September 2014)

• In Column "Awarder Details", fill up the awarder details, work order no. etc. - Select Compounded Type with tax rate prior to date of effect of amendment.

• Show the gross amount of the contract after deducting the amount of receipts from 3rd September, 2014 to 30th September, 2014 (i.e. Total contract amount - Receipts from 3rd Sept. to 30th September) and the balance outstanding.

• In the column Amount received during the quarter - enter amount received upto 2nd Sept. 2014.

Second Step (Receipts from 3rd September 2014 to 30th September 2014) for the same contract

• In Column "Awarder Details", enter the awarder details same as above, but add within bracket (2014-15 2nd Qrtr Split). Fill up the work order no., date etc.

• Select the Compounded Type with new tax rate after amendment.

• In the Column "Gross amount ", enter the total of the receipts received from 3rd September, 2014 to 30th September, 2014 and the balance amount outstanding.

• In the column Amount received during the quarter - enter receipts from 3rd September, 2014 to 30th September.

• Enter "0" in Amount received upto previous quarter.

• In the column "Amount Received during the quarter", enter the receipts during the period.

If the data are entered in the above manner, turnover details taxable at two different rates will automatically appear in Form No. 10B Part B -Turnover details

ILLUSTRATION

Awarder details ; ABC Ltd - Work order No.100/2013 dated 15-04-2013

Gross Amount of the Contract: Rs.1,00,000/-

Receipts upto previous Qrtr: Rs.40,000/-

Receipts in 2nd Qrtr 2014-15:

From 1st July, 2014 to 2nd September, 2014 ; Rs.18.000/-

From 3rd September, 2014 to 30th September, 2014 ; Rs.22,000/-

Balance Outstanding fro the next qtr: Rs.20,000/-

Form 10B - Part A - Details of Ongoing Contracts.

SI.No.1 ( For receipts from 1-7-2014 to 2-09-2014)

Awarder details: ABC Ltd- Work order No.100/2013 dated 15-04-2013

Compounded Type : Compounded 3%

Gross Amount: Rs.78,000/- ( Rs.1,00,000- Rs.22,000/-)

Received upto previous Qrtr ;Rs.40,000/-

Received during the Qrtr: Rs. 18,000/-

Balance Outstanding :. 20,000

SI.No.2 ( For the same contract for receipts from 03-09-2014 to 30-09-2014)

Awarder details: ABC Ltd - Work order No.100/2013 dated 15-04-2013 (2014-15 2nd Quarter Split)

Compounded Type : Compounded 4%

Gross Amount: Rs.22,000/- (Actual receipt during the period 03-09-2014 to 30-09-2014 and the balance outstanding)

Received upto previous Qrtr: Nil

Received during the quarter: Rs.22,000/- (Actual receipt during the period 03-09-2014 to 30-09-2014)

Balance Outstanding : Rs.0/-

Form 10B-Part A - Details of Ongoing Contracts/Projects

Form 10B-Part B - Turnover Details ( Data captured automatically from Part A)

In annual return also, the project details are to be entered as mentioned above. From the 3rd quarter onwards the new rate of tax is applicable.

Commissioner