18 August 2017
Dear all, I have a query, The Supplier supplies Electrical Material for Rs. 8 Lakhs, and he charges 2 lakh for installation. 1. Will he charge 28% on 8 Lakh and 18% on 2 Lakh? 2. 18% on whole 10 Lakh considering it as works contract done? 3. 28% on 10 Lakhs as major supply is electrical material? Kindly clarify.
18 August 2017
It is dependent the contract entered into by you with the customer. If it is a works contract the rate of tax applicable to Electrical installations under heading 995461 is 18% even though rate of tax to electrical is higher.
CAclubindia
