VAT on goods in works contracts applies even where goods are schedule-exempt; declared goods retain separate statutory treatment. A composite horticulture agreement constituting a works contract triggers VAT on the transfer of property in goods involved in execution of that contract; taxable turnover is the value at the time of transfer excluding labour and service charges. Materials used in such works contracts are chargeable under the works-contract tax provision irrespective of their schedule classification, except that declared goods transferred in the same form receive the statutory special treatment. Apportionment and valuation rules determine the taxable amount.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
VAT on goods in works contracts applies even where goods are schedule-exempt; declared goods retain separate statutory treatment.
A composite horticulture agreement constituting a works contract triggers VAT on the transfer of property in goods involved in execution of that contract; taxable turnover is the value at the time of transfer excluding labour and service charges. Materials used in such works contracts are chargeable under the works-contract tax provision irrespective of their schedule classification, except that declared goods transferred in the same form receive the statutory special treatment. Apportionment and valuation rules determine the taxable amount.
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