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), and in supersession of this department's notification No.F.12(101)FD/Tax/2011-59 dated 13.08.2013, as amended from time to time, the State Government being of the opinion that it is expedient in the public interest so to do, hereby, with immediate effect, 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 contract (s) subject to the following conditions, namely:-
1. Exemption Fee:
Such dealer shall pay exemption fee in lieu of tax payable on the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract. The exemption fee for the category of works contract mentioned in column number 2 of the table given below shall be at the rate as mentioned in column number 3 against each of them.
2. Procedure for obtaining exemption:
2.1 (i) A registered dealer exclusively engaged in the execution of works contract opting for payment of exemption fee in lieu of tax shall submit an application in Form WT-1 appended to this notification, electronically through the Official Website of the Department duly digitally signed by him or his business manager as declared in form VAT-02, within sixty days from the date of the award of the works contract, along with the self attested and legible scanned copy of Work Order and G-Schedule, to the Assessing Authority or the Officer authorized by the Commissioner in this behalf. In case the works contract is of the nature that the cost of material does not exceed five percent of the total contract amount, a self attested and legible scanned copy of Certificate from the Awarder to this effect shall also be submitted with the application. The dealer who has given consent for use of official website of the department in the manner prescribed in the rules may submit Form WT-1, without digital signature.
(ii) Where the dealer fails to furnish the scanned copy of Work Order and/or G-Schedule and/or certificate of the awarder, as the case may be, along with the application, he shall submit the hard copies of Work Order and/or G-Schedule and/or certificate of the awarder, as the case may be, along with the acknowledgement generated through the Official Website of the Department duly verified by himself or his business manager by affixing their signature on it within ten days from the date of submission of application in Form WT-1, to his Assessing Authority or the Officer authorized by the Commissioner in this behalf, and failure to do so shall be deemed to be a case of non-submission of application.
(iii) where the dealer fails to fulfil the requirements as mentioned in subclause
(ii) above within ten days of submission of Form WT-1, he may apply afresh for the same within the time specified in clause 2.1(i) above.
2.2 (i) The assessing authority or any officer not below the rank of an Assistant Commercial Taxes Officer authorized by the Commissioner in this behalf shall reject the application for grant of exemption certificate, where,-
(a) the applicant dealer has failed to comply with an order demanding initial or additional security under section 15 of the Rajasthan Value Added Tax Act, 2003 and/or sub-section (2A) of section 7 and/or under sub-section (3A) of section 7 of the Central Sales Tax Act, 1956; or
(b) the applicant dealer has failed to furnish any return or returns in accordance with the provisions of the Rajasthan Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956;
(ii) On rejection of the application the dealer may apply afresh for the same, within the time specified in clause 2.1(i) above, on fulfillment of the above requirements.
2.3 Subject to the provisions of clause 2.2 above, the Assessing Authority or the Officer authorized by the Commissioner in this behalf, on being satisfied that the application is complete in all respect, shall issue Exemption Certificate in Form WT-2 appended to this notification in the manner as provided in the official Website of the Department within twenty one days of submission of the application in form WT-1.
2.4 Where a dealer opting for payment of exemption fee in lieu of tax is executing more than one works contract, he shall submit separate application in Form WT-1, for each works contract.
2.5 Where any excess payment is made to such dealer 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 on submission of an application in Form WT-4 along with documentary evidence in this regard issued by the awarder, within sixty days of such communication from the awarder, and a revised Exemption Certificate shall be issued to the dealer through the Official Website of the Department.
3. Condonation of delay:
3.1 Where the dealer fails to submit the application within the time provided in clause 2.1(i) or in clause 2.5, he may be allowed to submit the same, on payment of late fee mentioned below, along with an application in Form WT-3 appended to this notification to condone the delay mentioning therein the details of payment of late fee.
3.2 No application under this notification shall be entertained after expiry of two years from the date of award of works contract.
4. Manner of deposit of Exemption Fee:
The dealer shall pay exemption fee at such rate as specified in clause 1 of this notification in the following manner:
(i) Where the 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, or Limited liability partnership, an amount calculated at the rate as mentioned in column number 3 of table mentioned in clause 1, shall be deducted by such awarder from each bill of payment to be made in any manner to such dealer and all the provisions of payment of tax provided in the Act or the rules made there under, for such dealer, shall apply mutatis mutandis .
(ii) Where the awarder is not covered under sub-clause (i) above, the dealer shall be required to make payment of exemption fee in equal monthly instalments in a period not exceeding the period of contract from the date of issuance of exemption certificate. In case such dealer has already received some payment for execution of works contract from the awarder, he shall enclose proof of payment of exemption fee on such payments, along with interest up to the date of filing of application, under this notification.
(iii) Where the dealer opting for payment of exemption fee in lieu of tax, has received some payment for execution of works contract from the awarder before the issuance of exemption certificate, he shall deposit the notified exemption fee on such payments, along with interest, if any, if the amount has not been deducted by the awarder in lieu of tax.
(iv) The amount already deducted by the awarder in lieu of tax from bill of payments to the dealer before the issuance of exemption certificate shall be adjusted against the exemption fee to be paid by the dealer.
5. Conditions:
5.1 The dealer, who has opted for payment of exemption fee in lieu of tax, shall purchase goods from within the state,for execution of the work contract, from a registered dealer of the State, and in case of use of any goods in the execution of the work contract, which is procured or purchased from dealer other than the registered dealer of the State, the dealer shall, in addition to the exemption fee, be liable to pay an amount equal to the amount of tax that would have been payable had the goods been purchased in the State from a registered dealer.
5.2 The dealer who has opted for payment of exemption fee in lieu of tax shall not be entitled to claim input tax credit in respect of the goods used in execution of the works contract.
5.3 That the certificate of exemption shall be liable to be cancelled by the assessing authority retrospectively.-
(i) if it is found that the same has been issued in contravention of the provisions of the Act, rules or notification; or
(ii) the dealer has concealed any facts regarding the works contract awarded to him.
5.4 That the tax collected or charged, if any, by the dealer shall be deposited to the State Government and the amount of tax so deposited shall not be refunded or adjusted against the exemption fee.
5.5 In case the rate of exemption fee is changed, the rate of exemption fee shall be the rate as mentioned in column number 3, of the Table given in clause 1 of this notification, as is applicable on the date of submission of application.-
(i) for grant of exemption certificate; or
(ii) under clause 2.5 of this notification.
6. Transitional provisions:
6.1 Where the application of any dealer, for grant of exemption certificate under notification No. F.12(63)FD/Tax/2005-80 dated 11.8.2006 and notification No. F. 12(101) FD/Tax/2011-59 dated 13.08.2013, is pending before the assessing authority or the officer authorized by the Commissioner in this behalf, on the date of issuance of this notification, he may switch over for payment of exemption fee under this notification within 15 days of issuance of this notification by submitting a fresh application under this notification.
6.2 Where the dealer holds the exemption certificate(s) issued under notification No. F.12(63)FD/Tax/2005-80 dated 11.8.2006 and notification No. F. 12(101) FD/Tax/2011-59 dated 13.08.2013, as amended from time to time, on the date of issuance of this notification and the execution of works contract covered under the said exemption certificate(s) is pending in full or in part, the exemption certificate issued earlier shall remain in force with the same exemption fee till the completion of works contract unless cancelled or revoked earlier.
FORM WT 1
Application for grant of Exemption Certificate
(for dealers engaged in execution of works contracts)
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. Registration Certificate No. (TIN)......................
4. e-mail address:..........................................
5. Mobile No:.....................................
6. Status of the applicant such as Proprietor / Partner / Director / Karta of H.U.F. / Manager / Secretary.
7. Period during which works contract be executed: from............to...........
8. Particulars of works contract (s):
I/We hereby undertake that I/ we shall abide by all the terms and conditions laid down by the State Government or any provisions of the Act or Rules made there under and if I /We fails to do so, I/We shall be liable to pay tax as per the provision of the Act.I/We 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 has been concealed.
Attachments:
1. Scanned copy of work order.
2. Scanned copy of G-Schedule.
3. Scanned copy of certificate of awarder, if applicable.
4. Proof of payment of late fee. if applicable.
Original / Revised
FORM WT 2
Exemption Certificate
1. ID No................dated..................
2. Name of Applicant with status. .....................................
3. Name and address of business. .....................................
4. Registration Certificate No. (TIN) .....................................
5. Details of the works contract and exemption
6. This certificate shall remain in force (till the completion of works contract unless cancelled or revoked earlier.
Exemption Certificate issued vide ID No................ dated.......... has been revised on the application of dealer dated ..........
Form WT-3
Application to condone the delay
The Assistant Commissioner /
Circle.............
1. Name of the dealer ...........................................................................................
2. TIN...................
3. Principal place of business...................
4. Date of award of works contract...................
5. Dale of submission of application.................
6. Period of delay.......................................
7. Reasons for delay....................................
8. Details of deposit of late fee.......................
Form WT-4
Application in case excess payment is made by the awarder
1. Name of the applicant ..................................................................
2. Name and address under which the applicant carries on business. ...................................
3. Registration Certificate No. ( TIN)......................
6. Status of the applicant such as Proprietor / Partner / Director Karta of H.U.F. / Manager Secretary.
7. Details of Form WT-2 received earlier.
8. Particulars of excess payment made in the existing works contract (s):
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 and undertake to pay the revised exemption fee, if any
Signature of the applicant and his status.
By order of the Governor,
(Aditya Pareek)
Joint Secretary to the Government
CORRIGENDUM No. F.12(59)FD/Tax/2014-166 Dated 22nd December, 2014
The English version of this Department's notification no. F. 12(59) FD/ Tax/ 2014-23 dated 14.07.2014 published in Rajasthan Gazette extraordinary Part 4(C) sub-part (II) shall be read with the following corrections;-