(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)
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.