Manpower services with material

When providing manpower services with material, the arrangement is usually treated as a composite supply of services, taxable at 18% under SAC 9985 (or 9954 if it qualifies as a works contract). If the supply is not naturally bundled, it may be a mixed supply taxed at the highest rate among the items included. You should clearly define the principal supply in your contract to ensure the correct tax rate is applied.