(1) The value of the goods at the time of the transfer of property in the goods (whether as goods or in some other form) involved in the execution of a works contract shall be determined by deducting the amounts paid by way of price for sub-contract made with a registered dealer, if any, pertaining to the said works contract.
(2) A registered dealer who claims any deduction referred to in sub-clause (c) of clause (30) of section 2, shall -
(a) maintain true and correct records for such deductions;
(b) prove to the satisfaction of the Commissioner that he has actually paid the amount in the year in which he claims such deduction; and
(c) furnish true and correct evidences for claiming such deductions at the time of assessment or when asked to furnish in any proceedings:
Provided that where the amount of charges towards labour, service and other like charges are not ascertainable or the accounts maintained by the contractor are not sufficiently clear or intelligible, a lump sum deduction shall be admissible in accordance with the percentage mentioned in the Table below, and the sale price of the goods at the time of the transfer of property shall be determined accordingly.
TABLE
(3) The percentage shown in the Table shall be applied after first deducting from the total contract price, the amount paid by way of price for the entire sub-contract made with sub-contractor, if any.
(4) The value of goods so arrived at under this rule shall, for the purposes of levy of tax, be the taxable turnover relating to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract.