Levy of Tax

Levy of Tax.—(1) Same as provided in sub-section (2), there shall be levied a tax on the taxable turnover of sales involving transfer of property in goods in the execution of a works contract relating to such works contracts as may be prescribed, at the rate of four per cent of such turnover.

1. (2) No tax shall be levied on the turnover of sales of transfer of property in goods, specified in the execution of works contract, if such goods are transferred from the contractor to the contractee in the same form in which they were purchased by the contractor.
2. (3) No such tax shall be leviable on turnover of sales for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract whether wholly or partly subject to the production of proof, as may be prescribed, that such sub-contractor is a registered dealer liable to tax and that the turnover of such amount is included in the return of the contractor or the sub-contractor.
3. (4) For the purpose of this Act "taxable quantum" means five lakh rupees.