In rule 58 of the Maharashtra Value Added Tax Rules, 2005, after sub-rule (1) the following sub-rule shall be inserted and shall be deemed to have been inserted with effect from the 20th June 2006, namely:
"(1A) In case of a construction contract, where alongwith the immovable property, the land or, as the case may be, interest in the land, underlying the immovable property is to be conveyed, and the property in the goods (whether as goods or in some other form) involved in the execution of the construction contract is also transferred to the purchaser such transfer is liable to tax under this rule. The value of the said goods at the time of the transfer shall be calculated after making the deductions under sub-rule (1) and the cost of the land from the total agreement value.
The cost of the land shall be determined in accordance with the guidelines appended to the Annual Statement of Rates prepared under the provisions of the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, as applicable on the 1st January of the year in which the agreement to sell the property is registered:
Provided that, deduction towards cost of land under this sub-rule shall not exceed 70% of the agreement value."
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