Amendment of Section 2:-

(a) Insection 2 of the Nagaland value Added Tax Act 2003, after sub-clause (c) of clause (v), the following sub-clause shall be added namely:- “(cc) the execution of any works contract, or the transfer of the right to use any goods for any purpose”. (b) Imsection2 of the Nagaland value Added Tax Act 2005, Sub-clause (d) of clause (d) of clause (xxvi) shall be deleted. (¢) In section 2 of the Nagaland Value Added Tax Act 2005, in the explanation to clause (xxvi), after sub-clause (a) the following shall be inserted namely:- “(aa) A sale falling under sub-clause (b) shall be deemed to have taken place within the State if the goods involved in the execution of works contract are within the State af the time of their use, application or appropriation for the execution of works contract;”. (d) Insection? of the Nagaland Value Added tax Act 2005, after clause (xxvii), the following explanation shall be inserted, namely:- / “Explanation: (a) Inrespect of the sale falling under sub-clause (b) of section xxvi, the full value of the consideration received or receivable under the contract for the transfer of property in goods whether as goods or in any other form including- () Inacase where any part of the work is carried out or executed by a sub- contractor, the amount received or receivable by such sub-contractor; and (i) Ina case where any goods have been supplied to the contractor by the contracted or any other person for use in the works contract for a consideration, the market value of the goods on the day they were so supplied. (b) Where there are several contracts relating to the same works or which is incidental or ancillary to each other, all such contracts shall be deemed to constitute a single contract. (c) The transfer of property in goods involved in a works contract (whether as goods or in any other form) shall be deemed to have taken place at the time and to the extent the whole or any part of the sale price under the contract is received or receivable by the contractor.” (d) Insection2 of the Nagaland Value Added Tax Act 2005, after sub-clause (1) of the explanation to clause (xxxii), the following shall be inserted, namely:- “(1A) The turnover of sales in respect of works contract shall be the aggregate of the amount of sale price received or receivable by the contractor during any period whether executed fully or partly, including any advances received or receivable by the contractor towards the sale price but excluding any amount refunded or refundable by the contractor or withheld from any payment made to him by way of discount, rebate, penalty, damages or otherwise in respect of such contract and reduced by:- @) Such percentage of the turnover towards labour and other charges as may be prescribed; and (i) Such other amount as may be prescribed.” (¢) Insection?2 of the Nagaland Value Added Tax Act 2005, after sub-clause (xxxvi0, the following clauses shall be inserted, namely:- “(xxxvii) “Works contract” means any agreement for carrying out or executing such works as may be specified for cash, deferred payment or other valuable consideration. (xxxviii) “Contractor” means the person carrying out or executing a works contract directly or otherwise. Explanation 1: The manager or agent of a contractor who resides outside the State and carries out or executes a works contract in the State, shall in respect of such works contract, be deemed to be a works contractor for the purpose ofthe Act. Explanation 2: Notwithstanding anything contained elsewhere in the Act, or in any other law for the time being in force, every person holding a formal document or instrument empowering such a specified person to act for and in the name of a local Naga authorized by or under “Power of Attorney” or any other authorization or document by whatever name called, executed or signed, carries out or executes a works contract in the State, shall be deemed to be a works contractor along with the local Nagas and shall be jointly or severally subject to the provisions of the Act. (xxxix) “Contractee” means any person for whom or for whose benefit a works contract is carried out or executed.”