Delhi VAT amends works contract valuation: labour and land charges excluded from taxable turnover subject to specified records. Taxable turnover for works contracts is the total consideration paid or payable but excludes charges for labour, services and similar charges and, in civil works, the cost of land, provided the dealer maintains adequate records. For joint development/collaboration contracts, the value of works for the landowner is the highest of actual construction value transferred, deed-stated land value reduced by consideration paid, or circle-rate based land value reduced by consideration paid; tax on such contracts is payable when goods are incorporated. Specified percentage deductions apply where charges are not ascertainable, and rules prescribe methods for determining land value, pro-rata apportionment, and corresponding input tax credit treatment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Delhi VAT amends works contract valuation: labour and land charges excluded from taxable turnover subject to specified records.
Taxable turnover for works contracts is the total consideration paid or payable but excludes charges for labour, services and similar charges and, in civil works, the cost of land, provided the dealer maintains adequate records. For joint development/collaboration contracts, the value of works for the landowner is the highest of actual construction value transferred, deed-stated land value reduced by consideration paid, or circle-rate based land value reduced by consideration paid; tax on such contracts is payable when goods are incorporated. Specified percentage deductions apply where charges are not ascertainable, and rules prescribe methods for determining land value, pro-rata apportionment, and corresponding input tax credit treatment.
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