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), the State Government being of the opinion that it is expedient in the public interest so to do, hereby 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 contracts(s) subject to the following, namely :-
(1) that in case of works contracts,
(i) awarded on or after 01.4.2006, the contractor shall apply in form WT 1; and
(ii) where the contractor opted for automatic exemption fee under rule 12 of Rajasthan Sales Tax Rules, 1995 shall apply form exemption under this notification for the remaining part of the contract as on April 1, 2006, in form WT 2.
(2) that application shall be submitted within 60 days from the date of award of the contract or the date of issue of this notification, whichever is later;
(3) that in case of delayed submission of the application, the assessing authority may, after recording reasons for doing so, condone the delay, on payment of a late fee of rupees one thousand for a year or part thereof. However, delay in case of second year or part thereof can be condoned on payment of a late fee of rupees five thousand and no application shall be entertained after expiry of two year from the date of award of the contracts;
(4) that on receipt of the application under clause (1), the assessing authority on being satisfied as to the correctness of the facts mentioned therein, shall issue exemption certificate in Form WT 3 appended hereto, in the case of works contracts awarded on or after 1.4.2006 and in Form WT 4 appended hereto, in the case of works contracts, where the contractor opted for automatic exemption fee under rule 12 of Rajasthan Sales Tax Rules, 1995 for exemption, for the remaining part of the contract as on 01.04.06. A copy thereof, shall be sent to the awarder;
4A. that where any excess payment is made to the contractor by the awarder for any additional work or value of the contract is enhanced in relation to the works contract for which exemption Certificate has already been issued, the exemption Certificate shall be revised accordingly.
(5) that such contractor shall pay exemption fee at the rate specified in Column 3 of the list given below in the following manner :-
(i) where an awarder is a Department of any Government, a Corporation, a public undertaking, a co-operative society, a local body, a statutory body, an autonomous body, a trust or a private or public limited company, an amount calculated at the rate as specified in column no. 3 of the list given below shall be deducted by such awarder from each bill of payment to be made in any manner to such contractor and all the provisions of payment of tax provided in the Act or the rules made there under for works contractors shall mutatis mutandis apply. In case the contractor has already received some payments for execution of works contract from the awarder before filing application, he shall enclose proof of payment/deduction of notified exemption fee on such payments, along with interest, if any, up to the date of filing of application, under this notification;
(ii) where the awarder is not covered under sub-clause (i) above, the contractor shall be required to make payment of exemption fee in equal monthly installments in a period not exceeding the period of contract from the date of filing of application. In case the contractor has already received some payments for execution of works contract from the awarder, he shall enclose proof of payment of notified exemption fee on such payments, along with interest up to the date of filing of application, under this notification;
(iii) the amount already deducted by the awarder in lieu of tax from bills of payments to the dealer before the issuance of this notification shall be adjusted against the exemption fee;
(6) that the contractor shall not be entitled to claim input tax credit in respect of the goods used in execution of the works contract for which exemption certificate has been granted;
(7) that the certificate of exemption shall be liable to be cancelled by the assessing authority retrospectively if it is found that the same has been issued under contravention of the provisions of the Act, rules or notification; and
(8) that the tax collected or charged, if any, by such dealer before the issue of this notification shall be deposited to the State Government and tax so deposited shall not be refunded or adjusted against the exemption fee.
LIST
This notification shall be deemed to have come into force w.e.f. April 1, 2006.
FORM WT 1
APPLICATION FOR GRANT OF EXEMPTION CERTIFICATE
To
The Assistant Commissioner/ The Commercial Taxes Officer, Circle _________________
1. Name of the Applicant.
2. Name and address under which the applicant carries on business.
3. Status of the applicant such as Proprietor/Partner/Director/Karta of H.U.F./ Manager / Secretary.
4. Principal place of business with City/Town/Village, Tehsil and District.
5. Branches with full address, if any:
6. Registration Certificate No. (TIN) _______________ w.e.f. ________________
7. Period for which exemption is applied for from _________________ To ___________
8. Nature of works contract __________________________________
9. Notification by which the works contract is covered for exemption No. _______________ dated _________________
10. Particulars of works contract(s) :
11. Amount of exemption fee deposited (with No. and date of challan and name of Bank, Treasury or sub-treasury).
I/we hereby undertake that if I/we fail to abide by any of the terms and conditions of the Exemption Certificate or any provisions of the Act or Rules, I/we shall pay tax on the sale or purchase of such goods in accordance with the provisions of the Act and the rules made thereunder. I also undertake to pay the revised exemption fee in case Exemption Certificate is revised.
I/we declare that the information given above is true and correct to the best of my/our knowledge and belief and nothing material has been concealed.
Note:-
1. Separate application should be submitted for separate works contract
2. Copy of the works order should be enclosed with this application.
3. Omitted w.e.f 30th March, 2007
____________________________________________________________________________
ACKNOWLEDGEMENT
Received from M/s_______________________ Registration No. (TIN) __________________ Form No. WT 1 for the works contract (description of the contract _____________________ awarded by _______________ for Rs. __________ for the period from ___________ to _____________ with following enclosures -
1.
2.
Serial No. of Register
SEAL of Office
FORM WT 2
3. Status of the applicant such as proprietor/Partner/Director/Karta of H.U.F./ Manager / Secretary.
I/we hereby undertake that if I/we fail to abide by any of the terms and conditions of the Exemption Certificate or any provisions of the Act or Rules, I/we shall pay tax on the sale or purchase of such goods in accordance with the provisions of the Act and the rules made thereunder.
1. Separate application should be submitted for separate works contract.
Received from M/s_______________________ Registration No. (TIN) __________________ Form No. WT 2 for the works contract (description of the contract _____________________ awarded by _______________ for Rs. __________ for the period from ___________ to _____________ with following enclosures -
FORM WT 3
EXEMPTION CERTIFICATE
ORIGINAL / COUNTERFOIL
1. Book No.
2. Serial No.
3. Serial No. of Exemption Certificate register.
4. Name of the applicant with status.
5. Name and address of the business.
6. Registration Certificate No. (TIN)
7. Principal place of business with branches, if any.
8. Details of the works contract and the exemption :-
9. Period of validity from __________ to ________________ unless cancelled or revoked earlier.
10. This certificate is liable to cancellation in case the holder thereof-
(a) Contravenes any condition, prescribed in the rules or in the notification in pursuance of which this certificate has been granted; or
(b) Fails to pay any tax or other sum payable after he has received a notice in respect there of, in accordance with the provisions of the Act or the rules made thereunder.
FORM WT 4