22. Determination of taxable turnover.

(1) For the purpose of determining the taxable turnover for levying tax under sub-section (1) of section 4 of the Act, the following amounts shall be deducted from turnover,

(a) on which no tax is leviable under the Act;

(b) which has been exempted from tax;

(c) the sale price of the goods returned to the dealer by the purchaser within a period of six months from the date of VAT invoice thereof.

" (d) The sale price of the goods consigned by the principal to the agent where such sale is covered by Form VAT-35, VAT-36 andVAT-36A."

(2) In case of a works contract, while determining the taxable turnover apart from the deductions provided under sub-rule (1), the amount of labour shall also be deducted from the total value of the contract.

Explanation, Where the amount of labour is not determinable from the accounts of a contractor, or is considered to be unreasonably high in view of the nature of the contract, the deduction towards labour charges shall be allowed by the assessing authority according to the limits laid down in Column 3 for the type of contract specified in Column 2 of the Table appended hereto:


S. No Type of contract

Labour charges as a percentage of gross value of contract

1 2 3
1. Fabrication and installation of plant and machinery. 25

Fabrication and erection of structural works of iron and steel including fabrication, supply and erection of iron trusses, purlins and the like.

3. Fabrication and installation of cranes and hoists. 15

** Deleted

 w.e.f. 09.03.2011


Fabrication and installation of rolling shutters and Collapsible gates.


Civil works like construction of buildings, bridges, roads, dams, barrages, canals and diversions.

7. Installation of doors, door frames, windows, frames and grills. 20
8. Supply and fixing of tiles, slabs, stones and sheets. 25
9. Supply and installation of air conditioners and air coolers. 15

Supply and installation of air conditioning equipments including deep freezers, cold storage plants, humidification plants and dehumidors.


Supply and fitting of electrical goods, supply and installation of electrical equipments including transformers.


Supply and fixing of furniture and fixtures, partitions including contracts for interior decorators and false ceiling.

13. ** Deleted

w.e.f. 09.03.2011

14. ** Deleted

w.e.f. 09.03.2011

1 2 3
15. Sanitary fitting for plumbing and drainage or sewerage. 20
16. Laying underground or surface pipelines, cables or conduits. 30
17. ** Deleted w.e.f. 09.03.2011
18. Supply and erection of weighing machines and weigh- bridges. 15
19. Painting, polishing and white washing. 25
20. All other contracts not specified from S.No.1 to 19 above. 25

"(2A) In case of a works contract, where a works contractor exercises option of exemption fee under a notification issued under sub-section (3) of section 8, awards whole or part of such contract to a sub-contractor, while determining the taxable turnover of subcontractor apart from deduction provided under sub-rule (1), the turnover of transfer of property in goods involved in execution of such sub-contract, shall be deducted."

(3) The computation of purchase price, if any, for levying tax under sub-section (2) of section 4 of the Act, shall be made in accordance with clause (28) of section 2, and the same shall be added in the taxable turnover of the dealer.

(4) 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 principal.

(5) The amount of cess levied by the State Government for specific purposes, shall be deducted for determination of taxable turnover.

“(6) Where any trade discount or any incentive in terms of quantity of goods in relation to any sell of goods has been allowed by a dealer who has opted for payment of tax under sub-section(7) of section 4 of the Act, the maximum retail price of goods given under any trade discount or incentive in terms of quantity shall also be included in taxable turnover.”