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

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.