To determine the taxable turnover, the following amounts shall, subject to the conditions specified, be deducted from the gross turnover-

(a) the turnover of sale of goods exempt from tax under section 17;

(b) the turnover of sale of goods, subject to production of evidence to the satisfaction of the Commissioner, taking place -;

(i) in the course of inter-State trade or commerce; or

(ii) outside the state; or

(iii) in the course of import into or export out of territory of India;

(c) The turnover of sales of goods, when such goods are intended to be used as capital goods as referred to in sub section (8) of Section -2 or for use in manufacturing of goods to a dealer under:

(i) a SEZ, or

(ii) a STP, or

(iii) an EHTP,

subject to furnishing a certificate issued by the purchasing dealer in a SEZ / STP / EHTP in Form VAT-616 along with the return furnished for the tax period during which the sale takes place and such other evidence to the satisfaction of the Commissioner;

d) the turnover of sale of goods to a EOU when such goods are intended to be used as capital goods as referred to in sub section (8) of Section-2 or for use in manufacturing of goods,subject to furnishing a certificate issued by the EOU in Form VAT-616 along with the return furnished for the tax period during which the sale takes place and such other evidence to the satisfaction of the Commissioner;

(e) in case of works contract, the expenditure incurred towards-

(1) labour charges for execution of the works;

(2) amount paid to a sub-contractor for labour and services;

(3) charges for planning , designing and architect's fees;

(4) charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract;

(5) cost of consumables such as water, electricity, fuel etc. used in the execution of the works contract the property in which is not transferred in the course of execution of a works contract;

(6) cost of establishment of the contractor to the extent it is relatable to supply of labour and services;

(7) other similar expenses relatable to supply of labour and services ;

(8) profit earned by the contractor to the extent it is relatable to supply of labour and services:

(9) amounts paid to a sub-contractor as consideration for the execution of works contract whether wholly or partly, if the contractor proves to the satisfaction of the assessing authority that tax has been paid by the sub-contractor on the turnover of the goods involved in the course of execution of such works contract.

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Provided that where a dealer executing works contract, fails to produce evidence in support of such expenses as referred to above or such expenses are not ascertainable from the terms and conditions of the contract or the books of accounts maintained for the purpose, a lump sum amount on account of labour, service and like charges in lieu of such expenses shall be determined at the rate specified in the Appendix.

(f) the turnover of sales of goods as specified in Schedule 'C' which has suffered tax under the Act, in the State.

(g) The turnover of sale of a retailer liable to pay turnover tax, of such goods which are declared u/s 14 of the CST Act and which have been purchased on payment of tax under the Act.

(h) The turnover of sale of a retailer, who is liable to pay turnover tax, of such goods on which tax has been paid on M.R.P under the Act.