Works Contract

[Augustine Pagare]

Hello

Innovative Interiors is my Interior Designing and Contracting firm. I would like to know that as i fall in Services, still can i raise Supply of goods Tax Invoce and Labour charges, professional charges ( Designing fees ) seperately????

As off now as per my knowledge providing and fixing which comes under services ( works contract ) where my client can't availe ITV ( Input Tax Credit for srvices . )

[Vamsi Krishna]

Hi

If your labour charges & professional charges are also part of work or towards interior works which is your principal supply, you can raise single invoice ( can bifurcate), but tax shall be @ 18% as it is works contract service.

With regards to availment of ITC by your customer, rules of ITC (furtherance of businees) to be complied.

AI Summary

Works contract service: tax on combined supply with invoice bifurcation allowed; ITC claim depends on compliance.
If labour charges and professional/design fees are part of the principal supply of interior works, the supplier may issue a single invoice (with component bifurcation), but the supply is taxable as a works contract service and taxed accordingly; the recipient's entitlement to input tax credit depends on compliance with the statutory ITC rules and the requirement that inputs be for the furtherance of business.