THE HIMACHAL PRADESH VALUE ADDED TAX RULES, 2005.
CHAPTER-IX : DEEMED ASSESSMENT, SCRUTINY OF RETURNS, ASSESSMENT, RE-ASSESSMENT AND RECTIFICATION OF MISTAKES ETC.

69. Assessment of tax and imposition of penalty.-

(1) After considering any objection made by the dealer, any evidence produced in support thereof, the outcome of enquiries made under rule 67 the appropriate Assessing Authority after giving the dealer an opportunity of being heard, shall assess the amount of tax and impose penalty, if any, to be paid by the dealer within the period specified in sub-rule (2) of rule 67.

(2) Notwithstanding anything to the contrary contained in these rules, in case of a works contract, tax shall be assessed on the "taxable turnover" of the works contractor after deducting all sums towards labour charges, other than any sum on account of labour charges includible in the "turnover" of a dealer under clause (ze) of section 2 of the Act, which are directly related with the goods, property in which has passed in the execution of works contract, whether as goods or in some other form:

Provided that where the labour charges, are not determinable from the accounts of the works contractors, or are considered un-reasonably high considering the nature of the contract, the deductions towards labour charges shall be allowed by the Assessing Authority according to the limits prescribed in column (3) for the type of contract specified in column 2 of the Table given below: -

TABLE

Sl.No.	Type of contract	Labour charges at percentage of the value of the contract.
1.	2.	3.
1.	Fabrication and installation of plant and machinery	25
2.	Fabrication and creation of structural works of iron and steel including fabrication, supply and errection of iron trusses, purlines etc.	15
3.	Fabrication and installation of cranes and joints.	15
4.	Fabrication land installation of elevators (lifts) and escalators	15
5.	Fabrication and installation of rolling shutters and collapsible gates	15
6.	Civil works like constructions of building, bridges, roads/dams, barrages, canal and diversions	25
7.	Installation of doors, door frames, windows frames and grills	20
8.	Supply and fixing of tiles, slabs, stones and sheets.	20
9.	Supply and installation of air conditioning equipments including deeps freezers, cold storage plant and dee-humidore	15
10.	Supply and installation of air conditioners and air coolers	15
11.	Supply and fitting of electrical goods, supply and installation of electrical equipments including transformers	15
12.	Supply and fixing of furniture's and fixtures, partitions including contracts for interior decoration and false ceiling	20
13.	Construction of Railway coaches and wagons on under carriages supplied by railway	20
14.	Construction or mounting of bodies of motor vehicles and constructions of trailers	20
15.	Sanitary fitting for plumbing and drainages or sewerage	25
16.	Laying under ground or surface pipe lines, cables or conductors	30
17.	Dying and printing of textiles	30
18.	Supply and erection of weighing machines and weigh bridges	15
19.	Painting polishing and white washing	30
20.	All other contracts not specified from serial No. 1 to 19 above:	25

Provided further that the Assessing Authority shall not allow any deduction towards labour charges unless the works contractor has specifically preferred the claim therefor and unless such claim is found by the Assessing Authority to be proper and justified in each case.

(3) Every order of assessment shall be recorded in writing and where the Assessing Authority determines the turnover of a dealer at a figure different from that shown in the return submitted under the provisions of these Rules, the order shall state briefly the reasons therefor, but a failure to state reasons shall not effect the validity of the assessment order.

(4) Every assessment order recorded by the appropriate Assessing Authority shall be communicated to the dealer and a certified copy of the same assessment order, alongwith Tax Demand Notice, if any, shall be supplied to him free of cost.