In determining the taxable turnover, the amounts specified in the following clauses shall subject to the conditions specified therein, be deducted from the total turnover of the dealer :-

(a) All amounts allowed as discount, provided that such discount is allowed in accordance with the regular practice in the trade and provided also that the accounts show that the purchaser has paid only the sum originally charged less the discount.

(b) (i) all amounts allowed to purchasers in respect of goods returned by them within a period of 3 months from the date of delivery of the goods, to the dealer when the goods are taxable on the amount for which they have been sold provided that the accounts show the date on which the goods were returned and the date on which and the amount for which refund was made or credit was allowed to the purchaser;

(ii) all amounts received from the sellers in respect of goods returned to them within a period of 3 months from the date of delivery of goods by the dealer, when the goods are taxable on the amount for which they have been bought, provided that the accounts show the date on which the goods were returned and the date on which and the amount for which refund was received;

(d) all amounts for which goods specified in the third Schedule to the Act are sold;

(e) all amounts for which goods exempted by a notification under Section 10 are sold or purchased, as the case may be, provided that the terms and conditions, if any, for the exemption in the notification are complied with;

(f) all amounts falling under the following two heads, when specified and charged for by the dealer separately, without including them in the price of goods sold;

(i) freight;

(ii) charges for delivery;

(g) all amounts realize by a dealer by the sale of his business as a whole;

(h) all amounts for which goods are sold or purchased where such sale or purchase takes place in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India or in the course of inter-state trade or commerce;

(j) all amounts for which goods specified in the first and second Schedules to the Act are sold or purchased by a dealer when such sale or purchase is not at the point of levy prescribed is the said Schedules;

(jj) (i) Turnover of sale of cardamom in auction in respect of which tax has been paid on the first sales or first purchase within the State.

(ii) Turnover of purchase of cardamom in respect of which tax has been paid by the auctioneer.

(k) (i) the turnover of sales or purchases made by a dealer through his agent in respect of which tax has been paid by the agent.

(ii) the turnover of sales or purchases made by an agent for and on behalf of any principal in respect of which tax has been paid by the principal.

(l) all amounts of sales tax collected by the dealer, if shown separately in the bills.

(m (i) the turnover of works contract which is given as a sub contract by the contractor and on which tax has been paid by the sub-contractor.

(ii) the turnover of works contract executed by a sub-contractor on which tax has been paid by the contractor

(n) (I) The taxable turnover of the dealer in respect of the transfer of property involved in the execution of works contract shall be arrived at after deducting the following amount from the total amount received by the dealer for the execution of the contract;

(a) all amounts relating to the sale of any goods involved in the execution of a works contract which are specifically exempted from tax under any of the provisions of the Act;

(b) all the amounts paid to the sub-contractors as consideration for execution of works contract whether wholly or partly:

Provided that no such deduction shall be allowed unless the dealer claiming deduction, produces proof that the sub-contractor is a registered dealer liable to pay tax under the Act and that the turnover of such amounts is included in the return filed by such sub-contractor; and

(c) all amounts towards labour charges and other service charges such as

(i) charges for planning and designing and the architects fee;

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

(iii) cost of consumable used;

(iv) cost of establishment of the dealer to the extent it is retable to the supply of labour and services;

(v) profit earned by the dealer to the extent it is relatable to supply of labour and services

(2) Every works contractor shall file along with the first monthly return after the commencement of the works contract, copy of the works schedule the statement of purchase of goods which are intended to be appropriated to the works contract effected during every month and pay the monthly tax on the basis of the purchases made during the month assuming the turnover as 115% of the purchase price.

(3) Where a contractor choose to pay tax on the actual turnover, he shall produce evidence in support of the claim namely evidence to prove the stage of the work at the beginning of the month and at the end of the month with particulars of material appropriated to the contract during the month. If the purchase details of goods transferred in the execution of the contract is not ascertainable, the turnover has to be arrived at after deducting labour charges as specified in the table annexed to Section 5C of the Act.

(o) The taxable turnover of a dealer of lottery ticket who is liable to pay tax under sub-section (1) of Section 5 shall be that part of the turnover of the extent it involves the right to participate in a draw it shall calculated at 60% of the retail price of the tickets sold or the total of the retail price of the tickets sold in a draw minus the prize money actually paid in respect of such draw within the State, whichever is higher: