Work Contracts

[Guest]

Dear Sir,

We have awarded an purchase order and work order to same party. They are submitting one supply bill and one services bill.

I am confuse, Is this works contracts or other services. Please explain.

Thanks & Regards,

Sanjay Vasava

AI Summary

Clarification on Works Contract: Separate Supply and Service Bills Indicate Works Contract; Tax Implications Explained. An individual inquired about whether submitting separate supply and service bills constitutes a works contract. A respondent clarified that separating service from materials indicates a works contract, with taxes applicable on service charges if goods are subject to VAT. Another contributor added that if the value of sale and service cannot be segregated, it can be classified under 'works contract service,' allowing for certain benefits. However, if segregation is possible, full service tax should be paid on the service portion without seeking abatement or reverse charge mechanism benefits.