Valuation of works contract services: gross contract value less value of goods transfer, with VAT-based valuation applied. Rule 2A requires that the taxable value of works contract service be computed as the gross amount charged for the works contract less the value of transfer of property in goods involved in the contract, with gross amount excluding VAT or sales tax paid on such transfers. The rule specifies that works contract service value includes labour charges, subcontractor payments for labour and services, planning and design fees, charges for hired machinery and tools, consumables used in execution, establishment costs and related expenses, and profit attributable to supply of labour and services. If VAT or sales tax is paid on the actual value of goods transfer, that VAT valuation shall be adopted for this purpose.