No tax to be levied on the turnover of subcontractor-Rajasthan VAT
CIRCULAR- No. 06/2015-16- No. F.16 (97)/Tax/CCT/14-15/5929 has been issued by the Rajasthan VAT authorities, clarifying that where a registered dealer commonly known as developer/ builder who, as works contractor, undertake the construction of flats, dwellings or buildings or premises and transfer them along with goods (whether as goods or in some other form) and land or interest underlying the land in pursuance of an agreement, has opted for payment in lump sum in lieu of tax under any notification issued in this regard, awards whole or part of the work for which he has opted for payment of lump sum in lieu of tax to a sub-contractor, no tax shall be levied on the turnover of such sub-contract subject to the condition as mentioned in proviso to sub-rule (6) of rule 22A of the RVAT Rules.
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