Recently, on 24th September 2015, the Rajasthan Government has inserted Notification No. F.12(43)FD/Tax/05-Pt-88 dated 24th September, 2015 in supersession of notification no. F.12(43)FD/Tax/05-36 dated 24-08-2007, for providing exemption from payment of VAT leviable on transfer of property in goods involved in the execution of works contracts, with immediate effect.

Such exemption is available only to the work contracts executed within the territory of Special Economic Zone, awarded by the units being established in Special Economic Zone or co-developers or developers of Special Economic Zone, up to 31.03.2016. {earlier vide notification dated 24-08-2007, the exemption to such work contracts were available for a period of 7 years}.

However, if the Special Economic Zone is established entirely in backward areas specified by the State Government, such exemption shall be available up to 23.08.2017. {earlier vide notification dated 24-08-2007, the exemption to such work contracts were available for a period of 10 years}

Thus, in comparison to the exemption provided earlier where only period was defined, now, the date has been specified upto which the exemption can be availed.