Dispute b/w works contract or supply and service
This query is : Resolved
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.
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.
CA R SEETHARAMAN
(Expert)
18 August 2017
He will charge 28% on 8 Lakh and 18% on 2 Lakh.
This will fall under supply and service.
This will fall under supply and service.
CA Suresh Jain
(Expert)
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.
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