The Jharkhand Value Added Tax Rules, 2006 - History
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22. Determination of Taxable Turnover of Goods involved in Works Contract for the purpose of sub-section (3)(c) of Section 9 :-

1.(a) The works contractor VAT Dealer shall be liable to pay tax at the appropriate rates, on the total value of goods, transferred in property (either in the same Form or in other Form) involved in execution of works contract.

(b) When such VAT dealer awards any part of the contract to a sub-contractor, such sub-contractor shall issue a tax invoice to the contractor for the value of the goods at the time of incorporation in such sub-contract.

The tax charged in the tax invoice issued by the sub-contractor shall be accounted by him in his returns.

(c) The value of the goods used in execution of work in the contract, declared by the contractor shall not be less than the purchase value and shall include total consideration contract charges, including blasting and breaking charges, crusher charges, loading, transport and unloading charges, stacking and distribution charges, expenditure incurred in relation to hot mix plant and transport of hot mix to the site and distribution charges.

(d) The value of goods involved shall be taxable after deducting from it, the following charges, such as: -

(i) Labour charges for execution of the works;

(ii) Charges for planning, designing and architect fees;

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

(iv) 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;

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

(vi) Other similar expenses relatable to supply of labour and services;

(vii) Profit earned by the contractor to the extent it is relatable to supply of labour and services.

2. Where the amount of charges towards the labour, services, hire charges or all other like charges in any contract are not ascertainable, from the terms and conditions or the accounts furnished in this behalf of the contract, the amount of such charges shall be calculated at the following percentages: -

Sl. No.	Type of contract	Percentage of the total value eligible for deduction
1.	(a) Electrical Contracts. (i) H.T. Transmission lines (ii) Sub-station equipment (iii) Power house equipment and extensions (iv) 11 and 22 KV and L.T. distribution lines 12+5 (v) All other electrical contracts (b) All structural contracts	Twenty percent Fifteen percent Fifteen percent Seventeen percent Twenty five percent Thirty five percent
2	Installation of plant and machinery	Fifteen percent
3	Fixing of marble slabs, polished granite stones and tiles (other than mosaic tiles)	Twenty five percent
4	Civil works like construction of buildings, bridges roads etc	Thirty percent
5	Fixing of sanitary fittings for plumbing, drainage and the like	Fifteen percent
6	Painting and polishing	Twenty percent
7	Laying of pipes	Twenty percent
8	Tyre re-treading	Forty percent
9	Dyeing and printing of textiles	Forty percent
10	Printing of reading material, cards, pamphlets, posters and office stationery	Forty percent
11	All other contracts	Thirty percent

Provided, where such contractor VAT dealer has not maintained the accounts to determine the correct value of the goods at the time of incorporation he shall pay tax at the rate of twelve and a half percent (12.5%) on the total consideration received or receivable subject to the deductions specified in the table aforesaid. In such cases the contractor VAT dealer shall not be eligible to claim input tax credit and shall not be eligible to issue tax invoices.

3. Where a works contractor is permitted to pay lump-sum amount or Composition of Tax under Section 22 or 58 respectively of the Act, the provisions of this Rule shall not apply in such cases.