Case:
"X" a ltd co, has entered into an subcontract agreement with "Y" a ltd company and who is the main contractor for delivering an EPC contract to the end customer "Z" a ltd Co.
X has placed an order for import of material, which will be consumed in the subcontract works by X. "X" raises invoice for the imported materials on "Y" as "sale in the course of import". Whereas the payment by "Y" to "X" will be made at a unit rate basis for the work done which inturn includes the material portion also.
Query:
1. Is it possible by X a subcontractor covered under WCt to make a sale in the course of imoort?
2. While the EPC works are delivered to end customer (Z) by Y the EPC contractor, what will be the tax treatment?
Regards
CAclubindia
