SUPPLY TRANSPORTATON & LAYING OF BOULDERS

[NAMAN DOKANIA]

HI,

A company, is engaged in providing supply of Boulders to Railways. The supply work also involves transportation & laying. Major value of work is supply of the same. Will this be termed as composite supply? If yes, then the tax rate of Boudlers would apply??

Pls. enlighten as per provisions

[Shilpi Jain]

Would this be in the nature of a works contract i.e. transfer of property in goods while installing the boulders which then becomes an immovable property? In such a scenario it would be a supply of service.

Require facts regarding the use of boulders in railways.

[Amit Agrawal]

To answer query raised by you, one needs to have better understanding of trade practices of that industry, factual & technical status, role and usage of these tracks as well as boulders etc.

Without knowledge and accuracy of these factual aspects, it is risky to apply legal provisions and arrive at any views on the query raised by you.

Are you talking about boulder means those things which are put / attached between two tracks of railway-line, to maintain continuity of the track and to ensure safe passage of railway?

And if so, are these boulders are easily removable and re-used at other place for similar purpose or not?

One more, question is whether these railway-lines are themselves immovable property or not and why?

And so on .... there will be more questions on many factual aspects, depending upon answers on initial questions.

So it seems to be that discussion on public forum may not give you any concrete views on the subject query unless someone has already studied and dealt with the all relevant factual aspects.

AI Summary

Works contract classification may determine whether supply of boulders is taxed as a service or as a supply of goods. Characterisation hinges on whether the supply, transport and laying of boulders effects a transfer of property that makes the boulders part of immovable property. If installation produces a works contract (service), the transaction is treated as supply of service; if the supply remains of movable goods with transport/placement as ancillary, it may be a supply of goods or a composite supply attracting goods tax treatment. Key factual issues include removability, intended use, trade practices and whether the railway infrastructure constitutes immovable property.