(1) In calculating his taxable turnover, a registered dealer may deduct from his gross turnover,-

(i) turnover of sales of goods declared tax free under section 9 of the Act;

(ii) turnover of sales of goods made;

(a) outside the State;

(b) in the course of inter-State trade or commerce;

(c) in the course of import of goods into India; and

(d) export of goods out of the territory of India under section 58 of the Act;

(iii) amount charged separately as interest in the case of a hire-purchase transaction or the amount charged as interest under any system of payment by instalments;

(iv) sale price of taxable goods where such sale was cancelled:

Provided that the deduction under this clause shall be claimed only if the person is in possession of all copies of tax invoice or retail invoice, as the case may be;

(v) sale price, in respect of any goods returned within a period of six months:

Provided that the dealer shall claim the deduction under this clause only on the basis of debit note issued by the purchaser for the goods returned;

(vi) amount allowed as cash discount provided such discount is in accordance with regular trade practice;

(vii) turnover of sales of goods to the following for their bonafide use subject to the production of certificate by appending the same with the return in Form VAT-XV:-

(1) United Nations Organisation and its constituent agencies like:

(i) UNDP

(ii) UNESCO

(iii) UNFPA

(iv) UNHCR

(v) UNICEF

(vi) UNIDO

(vii) UNICEF

(viii) WFAO

(ix) WHO

(x) ILO

(viii) The amount of subsidy borne by the Central Government towards sale price of the domestic LPG cylinder(s) under the Direct Benefit Transfer for LPG ( DBTL) scheme.

(2) Diplomatic Missions.

Certificate

Certified that we have purchased following goods from M/s ____________ holding Registration Certificate No. ____________ under the Himachal Pradesh Value Added Tax Act, 2005 for our bonafide consumption: -

Place:

Date:

Signature of the purchaser

with full address and seal.

Explanation. -- For the purpose of this sub-rule the turnover of the goods sent on consignment basis or branch transfer basis shall be excluded from the dealer's gross turnover.

(viii) Omitted

(ix) the turnover of sale of Aviation, Turbine Fuel made under sub-section (5) of section 5 of the Central Sales Tax Act, 1956 (74 of 1956) to the "designated Indian carrier", namely, Air India, Indian Airlines, Jet airways, Air Sahara and Air Indian Express, for the purposes of international flight, subject to furnishing of the following certificate, namely :-

CERTIFICATE

Certified that we have purchased Aviation Fuel from M/s _____________ holding Registration Certification No. ______________ under the Himachal Pradesh Value Added Tax Act, 2005, for the purposes of our international flight mentioned below and that the Aviation Turbine Fuel shall be utilized for the said purpose :-

(2) The deduction referred to in clauses (i) to (vii) of sub-rule (1), shall be claimed in the tax period in which the event occurs:

Provided that if the turnover of the period is less than the claim, then the balance of such deduction shall be claimed in the subsequent tax period(s).

(3) The provisions of clauses (i) to (vii) of sub-rule (1) shall also apply for the determination of taxable turnover of purchases for levy of purchase tax under clause (b) sub-section (1) of section 6 of the Act to the extent applicable.

(4) (a) The value of the goods involved in the execution of a works contract shall be determined by taking into account the value of the entire works contract and deducting therefrom the components of payment made towards labour and services, including:

(i) abour charges for execution of the works;

(ii) amount paid to a sub-contractor for labour and services;

(iii) charges for planning, designing and architects fees;

(iv) charges for obtaining for hire, machinery and tools used for the execution of the works contract;

(v) cost of consumables, such as, water, electricity and fuel, used in the execution of the works contract, the property in which is not transferred in the course of execution of a works contract;

(vi) cost of establishment of the contractor to the extent it is relatable to supply of labour and services;

(vii) other similar expenses relatable to supply of labour and services;

(viii) profit earned by the contractor to the extent it is relatable to supply of labour sand services;

(b) The amounts deductible under these heads shall be determined in the light of the facts of each particular case on the basis of the material produced by the contractor.

(5) The sale price of the goods sold by the commission agent on behalf of his principal, registered under the Act, shall be added in the taxable turnover of the agent.