30 Deduction for charges towards labour, service and other like charges.

Deduction for charges towards labour, service and other like charges.

30. (1) A dealer who is liable to pay tax under section 14, may, for the purpose of determining his taxable contractual transfer price on which tax is payable under subsection (1) of section 18 during any period, deduct under clause (d) of sub-section (2) of that section, from contractual transfer price received or receivable, the following:-

(a) labour charges for execution of works contract;

(b) charges for planning, designing and architects fees;

(c) charges for obtaining on hire or otherwise machinery and tools used for the execution of the 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 relatable to supply of labour and services; and

(f) other similar expenses relatable to supply of labour and services; and

(g) profit earned by the contractor to the extent it is relatable to supply of labour and services subject to furnishing of profit and loss account of the works site.

(2) In the cases where the amounts referred to in clause (a) to clause (g) of sub-rule

(1) are not ascertainable from the accounts of a dealer, or if a dealer does not maintain proper accounts, the taxable contractual transfer price may, at the option of such dealer, be determined after deducting the amount, calculated at the percentages specified in column

(3) of the following table for different types of contracts, and the application of different rates of tax on such percentages as mentioned in column (4) of the table, of the taxable contractual transfer price, so determined :-