Notification regarding exemption from payment of tax to the registered dealers engaged in execution of works contract leviable on the transfer of property in goods
NOTIFICATION Jaipur, July 14, 2014
NOTIFICATION Jaipur, July 14, 2014
In exercise of the powers conferred by sub-section (3) of section 8 of the Rajasthan Value Added Tax Act, 2003(Act No. 4 of 2003), and in supersession of this department’s notification No.F.12(10l)FD/Tax/201 1-59 dated 13.08.20 13, as amended from time to time, the State Government being of the opinion that it is expedient in the public interest so to do, hereby, with immediate effect, exempts from payment of tax the registered dealers engaged in execution of works contracts, Leviable on the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract (s) subject to the following conditions, namely:—
1. Exemption Fee:
Such dealer shall pay exemption fee in lieu of tax payable on the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract. The exemption fee for the category of works contract mentioned in column number 2 of the table given below shall be at the rate as mentioned in column number 3 against each of them.
Table
| S No | Category of works contract | Rate of exemption fee (% of the total value of the contract) |
| 1 | 2 | 3 |
| 1. | Works contract where the cost of goods involved in execution of works contract does not exceed live percent of the total contract amount. | 0.10 |
| 2. | Works contract relating to EPC Turnkey power projects awarded by Rajasthan Rajya Vidyut Utpadan Nigam Limited. | 1.00 |
| 3. | Works contract relating to construction and repair of roads, runways, bridges, dams, drains excluding sewerage system, tunnels, canals, channels, barrages, railway tracks, causeways, sub ways, diversion, spill ways. boundary walls, buildings and water harvesting system. | 0.75 |
| 4. | Works contract related to setting up of new enterprise or expansion of existing enteiprise manufacturing fertilizer within the State with minimum investment of Rs.2500 crore. | 1.00 |
| 5. | Any other kind of works contract not covered by item no. I to 4 above. | 2.00 |
2. Procedure for obtaining exemption:
2.1 (i) A registered dealer exclusively engaged in the execution of works contract opting for payment of exemption fee in Lieu of tax shall submit an application in Form WT- 1 appended to this notification, electronically through the Official Website of the Department duly digitally signed by him or his business manager as declared in form VAT-02, within sixty days from the date of the award of the works contract, along with the self attested and legible scanned copy of Work Order and G-Schedule, to the Assessing Authority or the Officer authorized by the Commissioner in this behalf. En case the works contract is of the nature that the cost of material does not exceed five percent of the total contract amount, a self attested and legible scanned copy of Certificate from the Awarder to this effect shall also be submitted with the application. The dealer who has given consent for use of official website of the department in the manner prescribed in the rules may submit Form WT- I, without digital signature.
(ii) Where the dealer fails to furnish the scanned copy of Work Order and/or G-Schedule and/or certificate of the awarder, as the case may be, along with the application, he shall submit the hard copies of Work Order and/or G-Schedule and/or certificate of the awarder, as the case may be, along with the acknowledgement generated through the Official Website of the Department duly verified by himself or his business manager by affixing their signature on it within ten days from the date of submission of application in Form WT-l, to his Assessing Authority or the Officer authorized by the Commissioner in this behalf and failure to do so shall be deemed to be a case of non-submission of application.
(iii) where the dealer fails to fulfil the requirements as mentioned in sub-clause (ii) above within ten days of submission of’ Form WT-l, he may apply afresh for the same within the time specified in clause 2.1(i) above.
2.2 (i) The assessing authority or any officer not below the rank of an Assistant Commercial Taxes Officer authorized by the Commissioner in this behalf shall reject the application for grant of exemption certificate, where,-
(a) the applicant dealer has failed to comply with an order demanding initial or additional security under section 15 of the Rajasthan Value Added Tax Act, 2003 and/or sub-section (2A) of section 7 and/or under sub-section (3A) of section 7 of the Central Sales Tax Act, 1956; or
(b) the applicant dealer has failed to furnish any return or returns in accordance with the provisions of the Rajasthan Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956;
(ii) On rejection of the application the dealer may apply afresh for the same, within the time specified in clause 2.1(1) above, on fulfilment of the above requirements.
2.1 (i) A registered dealer exclusively engaged in the execution of works contract opting for payment of exemption fee in Lieu of tax shall submit an application in Form WT- 1 appended to this notification, electronically through the Official Website of the Department duly digitally signed by him or his business manager as declared in form VAT-02, within sixty days from the date of the award of the works contract, along with the self attested and legible scanned copy of Work Order and G-Schedule, to the Assessing Authority or the Officer authorized by the Commissioner in this behalf. En case the works contract is of the nature that the cost of material does not exceed five percent of the total contract amount, a self attested and legible scanned copy of Certificate from the Awarder to this effect shall also be submitted with the application. The dealer who has given consent for use of official website of the department in the manner prescribed in the rules may submit Form WT- I, without digital signature.
(ii) Where the dealer fails to furnish the scanned copy of Work Order and/or G-Schedule and/or certificate of the awarder, as the case may be, along with the application, he shall submit the hard copies of Work Order and/or G-Schedule and/or certificate of the awarder, as the case may be, along with the acknowledgement generated through the Official Website of the Department duly verified by himself or his business manager by affixing their signature on it within ten days from the date of submission of application in Form WT-l, to his Assessing Authority or the Officer authorized by the Commissioner in this behalf and failure to do so shall be deemed to be a case of non-submission of application.
(iii) where the dealer fails to fulfil the requirements as mentioned in sub-clause (ii) above within ten days of submission of’ Form WT-l, he may apply afresh for the same within the time specified in clause 2.1(i) above.
2.2 (i) The assessing authority or any officer not below the rank of an Assistant Commercial Taxes Officer authorized by the Commissioner in this behalf shall reject the application for grant of exemption certificate, where,-
(a) the applicant dealer has failed to comply with an order demanding initial or additional security under section 15 of the Rajasthan Value Added Tax Act, 2003 and/or sub-section (2A) of section 7 and/or under sub-section (3A) of section 7 of the Central Sales Tax Act, 1956; or
(b) the applicant dealer has failed to furnish any return or returns in accordance with the provisions of the Rajasthan Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956;
(ii) On rejection of the application the dealer may apply afresh for the same, within the time specified in clause 2.1(1) above, on fulfilment of the above requirements.