To determine the taxable turnover, the following amounts shall, subject to the conditions specified, be deducted from the gross turnover-

(a) the turnover of sale of goods exempt from tax under section 17;

(b) the turnover of sale of goods, subject to production of evidence to the satisfaction of the Commissioner, taking place -;

(i) in the course of inter-State trade or commerce; or

(ii) outside the state; or

(iii) in the course of import into or export out of territory of India;

(c) The turnover of sales of goods, when such goods are intended to be used as capital goods as referred to in sub section (8) of Section -2 or for use in manufacturing of goods to a dealer under:

(i) a SEZ, or

(ii) a STP, or

(iii) an EHTP,

subject to production of evidence to the satisfaction of the Commissioner;

d) the turnover of sale of goods to a EOU when such goods are intended to be used as capital goods as referred to in sub section (8) of Section-2 or for use in manufacturing of goods, subject to production of evidence to the satisfaction of the Commissioner;

(e) in case of works contract, the expenditure incurred towards labour and service, subject to the condition that evidence in support of such expenses are produced to the satisfaction of the Commissioner :

Provided that where a dealer executing works contract, fails to produce evidence in support of expenses towards labour and service as referred to above or such expenses are not ascertainable from the terms and conditions of the contract or the books of accounts maintained for the purpose, expenses on account of labour and service shall be determined at the rate specified in the Appendix.

(f) the turnover of sales of goods as specified in Schedule 'C' which has suffered tax under the Act, in the State.

(g) The turnover of sale of a retailer liable to pay turnover tax, of such goods which are declared u/s 14 of the CST Act and which have been purchased on payment of tax under the Act.

(h) The turnover of sale of a retailer, who is liable to pay turnover tax, of such goods on which tax has been paid on M.R.P under the Act.