Raw Water Purchase for Manufacturing of Dairy Products

Are separate bills issued for purchase of water and lorry freight?  How is GST charged in these invoices?  While GST invoice/s would not be conclusive for determining the TDS liability, it will be useful and essential to look at the invoices.

There is no definite formulae for distinguishing sale from a works contract and it has to be decided on case to case basis looking at facts and documents.  While I do not see any definite answer without looking at all documents, prima facia it appears that s.194C won’t apply as principal purpose of the arrangement seems to be purchase of raw water.  Many judgments have gone on the basis of principal purpose test to decide whether s.194C shall apply or not.

However, the contract and GST invoices need to be examined before concluding. 

Author: Advocate Ravish Bhatt 
Gmail: ravishdbhatt @ gmail.com 
Link to Linkedln Profile: https://bit.ly/3IDGfsU