THE GOA VALUE ADDED TAX RULES, 2005
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Body 4A Determination of sale price in respect of Works Contract.-

(1) In case of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, the sale price of such goods shall be determined by effecting the following deductions from the value of each contract, subject to a maximum of 50%, in so far as the amounts relating to the deduction pertain to such works contract:-

(i) Labour and service charges for the execution of the works contract;

(ii) Amounts paid by way of price for sub-contract, if any, to sub-contractors;

(iii) Charges for planning, designing and architect's fees;

(iv) Charges for obtaining on hire or otherwise, machinery and tools for the execution of the works contract;

(v) Cost of consumables, such as water, electricity, fuel used in the execution of works contract;

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

(vii) Other similar expenses relatable to the said supply of labour and services, where the labour and services are subsequent to the said transfer of property;

(viii) Profit earned by the contractor to the extent it is relatable to the supply of said labour and services:

Provided that where the contractor has failed to produce audited accounts which enable a proper evaluation of the different deductions as mentioned above, or where the Commissioner finds that the accounts maintained by the contractor are not sufficiently clear or intelligible, the sale price shall be determined by allowing a lump sum deduction as specified in column (3) of the Table below for the Works Contract as specified in the corresponding entry in column (2) of the said Table, in lieu of the deductions as mentioned above.

TABLE

Sr.No.	Classification of works contract	Percentage of amount to be deducted from the value of contract
(1)	(2)	(3)
(1)	Installation of plant and machinery	Fifteen per cent
(2)	Installation of air conditioners and air coolers	Ten per cent
(3)	Installation of elevators (lifts) and escalators	Fifteen per cent
(4)	Fixing of marble slabs, polished granite stones and tiles (other than mosaic tiles)	Twenty-five per cent
(5)	Civil works, like construction of buildings, bridges, roads, etc.	Thirty-five per cent
(6)	Construction of railway coaches or under- -carriages supplied by Railways	Thirty per cent
(7)	Ship and boat building including construction of barges, ferries, tugs, trawlers and dragger	Twenty per cent
(8)	Fixing of sanitary fittings for plumbing, drainage and the like	Fifteen per cent
(9)	Painting and polishing	Thirty per cent
(10)	Construction of bodies of motor vehicles including that of trucks	Twenty per cent
(11)	Laying of pipes	Twenty per cent
(12)	Tyre re-treading	Forty per cent
(13)	Annual maintenance contract	Forty per cent
(14)	Any other works contract	Thirty per cent

Note: The percentage as stated in Table above, is to be applied after first deducting from the total contract price, the quantum of price on which tax is paid by the sub-contractor, if any, and the quantum of tax separately charged by the contractor if the contract provides for separate charging of tax.

(2) In case of a works contract involving construction, where building and the land or, as the case may be, interest in the land, underlying the building is to be conveyed, and the property in the goods (whether as goods or in some other form) involved in the execution of such works contract is also transferred to the purchaser, then, such transfer is liable to tax. The value of the said goods at the time of the transfer shall be calculated after making the deductions under sub-rule (1) and the cost of the land from the total agreement value:

Provided that, deduction towards cost of land and deduction under sub-rule (1) shall not exceed 50% of the agreement value or Rs. 20,000/- per sq. mtr. of the built up area, whichever is higher.

(3) The value of goods so arrived at under sub-rule (1) shall, for the purposes of levy of tax, be the sale price relating to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract.