THE WEST BENGAL VALUE ADDED TAX RULES, 2005
CHAPTER VIII : Return periods, prescribed dates, manner of furnishing returns, manner and conditions for payment of tax at compounded rate, manner and time of payment of tax and interest for delayed payment or non payment of tax before assessment, manner of furnishing statements by registered dealer, and particulars in respect of deduction and deposit of an amount towards payment of tax on contractual transfer price.

Body 46XA. Portion of amount of payment and percentage for deduction from payment to a dealer for an amount towards tax on intra-State contractual transfer price.-

(1) The deduction under sub-section (1) of section 40 from payment to any dealer for execution of a works contract within West Bengal, shall be made on behalf of the contractee at the per centum specified in sub-rule (2) on that portion of the amount of payment which remains after deducting therefrom -

(a) the portion of payment in respect of turnover relating to purchase of goods from such dealer in the course of inter-State trade or commerce or in the course of import into India or in the course of export out of India within the meaning of section 3 or section 5 of the Central Sales Tax Act, 1956 (74 of 1956), read with sub-clause (ii) of clause (g) of section 2 of that Act, for which a tax invoice or invoice or bill showing separately the price of such goods has been issued by such dealer to the contractee in respect of such works contract, where -

(i) delivery of such purchased goods from the common carrier is not taken by the contractee or his agent, or

(ii) such purchased goods are not allowed to be used, or handed over or delivered to such dealer or his agent for use, in execution of such works contract within West Bengal, and

(iii) the payment is made only with reference to such tax invoice or invoice or bill;

(b) the amount paid as advance prior to commencement of the execution of such works contract; and

(c) the amount of payment where no transfer of property in goods (whether as goods or in some other form) is involved in the execution of such works contract and the payment is made by, or on behalf of or to a dealer who has not claimed deduction under clause (c) of sub-section (2) of section 18 in respect of such works contract.

"(2) The amount to be deducted for the purpose of sub-section (1) of section 40 shall be-

(a) in respect of payment to a dealer, other than a registered dealer who has exercised his option under sub-section (4) of section 18 to pay tax at the compounded rate in terms of rule 39 for the year for which the payment has been made, such per centum as mentioned in sub-column (a) of column (2) of the Table below on the amount of payment to such a registered dealer who is not a return defaulter for more than one return period under this Act or under the Central Sales Tax Act, 1956, on the date of such payment, and in sub- column (b) of that Table for payment to a registered dealer who is a return defaulter for more than one return period under this Act or under the Central Sales Tax Act, 1956, or to a dealer other than a registered dealer, in respect of execution of works contract in West Bengal which remains after allowing deduction as in sub-rule (1):-

Name of contract	Per centum of deduction on total amount of payment after deduction as in sub-rule (1)
1	2
	To a registered dealer who furnish a certificate of return filing	a registered dealer who does not furnish a certificate of return filing or to a dealer other than a registered dealer
	(a)	(b)
(i) Printing on any material.	Three per centum	Five per centum
(ii) All contracts specified in sub-rule (2) of rule 30 excluding the contract for printing on any material	Three per centum	Five per centum

(b) in respect of payment to a registered dealer who has exercised his option under sub-section (4) of section 18 to pay tax at the compounded rate in terms of rule 39 for the year for which the payment has been made, at the rate of three per centum of the total amount of payment to such registered dealer."