composite supply

[CA.ANCHAL RASTOGI]

A CONTRACTOR GETS A ORDER FROM A OFFICE FOR ELECTRIC WIRING FIXING OF LIGHT AND FAN. IN ORDER IT IS SPECIFICALLY MENTIONED THAT WHICH MAKE AND MODEL OF ITEMS WILL BE USED BY THE CONTRACTOR. IN WORK ORDER, TOTAL CONSIDERATION IS FIXED FOR A SINGLE AMOUNT FOR SUPPLY OF BOTH GOODS AND SERVICES.

WHETHER IT IS QUALIFIED AS COMPOSITE / MIXED SUPPLY. WHETHER IT MAY BE TAXED @ 18% ASSUMING SUPPLY OF SERVICE AS PRINCIPAL SUPPLY.

AI Summary

Mixed supply: single-price bundled goods and services taxed as the supply attracting the highest applicable tax rate.
A single lump-sum contract supplying specified electrical materials and wiring, invoiced without itemisation, is treated as a mixed supply; mixed supplies are taxed as the supply attracting the highest rate, whereas itemised or principal-supply characterisation allows application of item-wise tax treatment-therefore itemised invoicing or value apportionment is recommended to align tax treatment with goods and services.