Clarification regarding composite supply-reg

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1.whether Preparation of meals, packing and supply of the same to airlines is under composite supply or the same is to be treated as supply of goods only not as supply of service as the goods are being supply by the supplier under contract to airlines (air india limited/jet airways) and services are being rendered by them only(air india limited/jet airways) not by the supplier of foods.

2.are both, supply of foods by the supply and services by the Air India limited/jet airways naturally bundled at the end of the supplier of foods.

However, the supplier of foods firm are also engaged in Boarding, Handling Charges, Hi-lift Charges to air india limited/jet airways.

Pls clarify
Replies (1)

In the above query, if there is only 1 contract between the supplier of foods firm and the airlines which includes supply of food, boarding, handling charges, hi-lift charges, etc., then  it will be considered as 'mixed supply' as the food services and the remaining services are not 'naturally bundled'. The tax rate applicable will be the highest rate of tax which will be considered from among the separate services.

The above services cannot be considered as composite supply as supplying food and boarding, handling charges are not naturally bundled.

If there are separate contracts for the various services, then the services will be normal supply i.e food supply service will be taxed separately from boarding services, etc. 


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