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THE WEST BENGAL VALUE ADDED TAX RULES, 2005
CHAPTER VI : Deductions.

Body 30. Deduction for charges towards labour service and other like charges actually incurred.

(1) Subject to the production of books of accounts, records and other proofs before the appropriate assessing authority on demand by such authority, a dealer liable to pay tax under section 14, may, for the purpose of determining his taxable contractual transfer price on which tax is payable during any period, deduct under clause (b) and clause (d) of sub-section (2) of section 18, from intra-State contractual transfer price received or receivable, the amount of the following charges actually incurred by such dealer-

    (a) labour charges for execution of works contract;

    (b) charges for planning, designing and architect's fee;

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

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

    (e) cost of establishment of the contractor to the extent it is related to supply of labour and services:

    (f) other similar expenses related to supply of labour and services: and

    (g) profit earned by the contractor to the extent it is related to supply of labour and services.

(2) Where in cases, the amounts referred to in clause (a) to clause (g) of sub-rule (1), or the taxable contractual transfer price for application of proper rate of tax, are not ascertainable from the books of accounts and records maintained by the dealer or where a dealer does not maintain books of accounts and records worthy of credence as found by the assessing authority or the auditing authority, the taxable contractual transfer price and the application of different rates of tax thereon, may be determined under sub-section (3) to section 18-

    (i) after deducting, from intra-State contractual transfer price, amounts of contractual transfers as provided in clause (a), clause (c) and clause (d) of sub-section (2) of section 18, and then

    (ii) the balance of intra-State contractual transfer price, after deduction as referred to in (i), may be apportioned, to arrive at the taxable contractual transfer price, after deducting the amount calculated at the rate specified in column (3) of the TABLE below for different type of contracts, and different rate of taxes shall be applicable on such percentages as mentioned in column (4) of the TABLE, of such balance of intra-State contractual transfer price-

TABLE (w.e.f.01-10-2014)

Serial No. Type of contract Deduction towards labour, service and other like charges at the rate of Percentage of the balance intra-State contractual transfer price after deductions as in clause (i) above, taxable at the rate of
(1) (2) (3) (4)
    Per centum 5 per centum 14.5 per centum
1. Fabrication and installation of plant and machinery. 25 50 25
2. Fabrication and erection of structural works of iron and steel including fabrication, supply and erection of trusses, purloins and other similar items. 20 50 30
3. Fabrication and installation of cranes and hoists. 15 25 60
4. Omitted.      
5. Fabrication and installation of rolling shutters and collapsible gates. 15 45 40
6. Civil works like construction of buildings, bridge, roads, dams, barrages, canals and diversions. 25 40 35
7. Installation of doors, door frame, windows, frames and grills. 20 10 70
8. Supply and fixing of tiles, slabs, stones and sheets. 20 Nil 80
9. Supply and installation of air conditioners and air coolers. 15 5 80
10. Supply and installation of an air conditioning equipment including deep freezers cold storage plants, humidification plants and di-humidors 15 5 80
11. Supply and fitting of electrical goods, supply and installation of electrical equipments including transformers. 20 50 30
12. Supply and fitting of furniture and fixtures, partitions including contracts for interior decoration and false ceiling. 20 5 75
13. Construction of railway coaches and wagons. 20 50 30
14. Construction or mounting of bodies of motor vehicle and construction of trailors. 20 50 30
15. Sanitary fitting for plumbing drainage or sewerage. 25 15 60
16. Laying under-ground surface pipeline cable and conduits. 30 30 40
17. Dying and printing of textiles. 40 60 Nil
18. Supply and erection of weighing machine and weigh bridge. 15 30 55
19. Painting, polishing and white washing. 30 Nil 70
20. Printing including lamination, other than those mentioned elsewhere in the TABLE. 20 80 Nil
20A. Repair or maintenance or servicing of any motor vehicles including two wheelers like motor cycle, scooter, etc. involving transfer of only Schedule C goods 10 55 35
20B Repair or maintenance or servicing of any motor vehicles including two wheelers like motor cycle, scooter, etc. involving transfer of only Schedule CA goods 10 0 90
20C Annual maintenance contract of any equipment including computer. 40 20 40
21. All other works contracts not specified elsewhere in the TABLE and involving transfer of declared goods as specified in section 14 of the Central Sales Tax Act, 1956 (74 of 1956) and other goods specified under Schedule C, Schedule CA, or Schedule D. 20 30 50
22. All other works contracts not specified elsewhere in the TABLE and not involving any transfer of declared goods as specified in section 14 of the Central Sales Tax Act, 1956 (74 of 1956). 20 0 80

Explanation - For removal of any doubt, a registered dealer engaged in works contract and liable to pay tax under section 14 may, on his own also, pay tax on his taxable contractual transfer price under this sub-rule.

(3) If a dealer issues a tax invoice or invoice or bill, or issues any other document of like nature for claiming or receiving payment, in respect of execution of works contract in West Bengal without showing separately the amount of tax charged under section 18 on transfer of property in goods (whether as goods or in some other form) involved in execution of such works contract, it shall be presumed that the dealer has charged and realised the full amount of tax as is payable in terms of sub-rule (2) of rule 30 on the full amount for which the tax invoice or invoice or bill or any other document of like nature for claiming or receiving payment has been issued.