Supply & installation of sliding doors will be covered under works contract

[Guest]

Dear Team,

whethet supply & installation of  Automatic sliding doors will be covered under works contract or not.

facts are:

1.Supplier is charging Rs. 30,000 as installation charges & charging service tax @12.36% on it.

 2. Buyer is issuing purchaser order & installation cost is also mentioned in PO

wheter buyer is going on right track or it should be WO.

Please guide me

Thanks

Umesh

 

 

[YAGAY andSUN]

For your clafication, even under WCT (which is the part of VAT/CST), Works Contract Tax would be levied on the goods itself.  How you take it whether as Sale of Goods or as Works Contract it will depend on the Scope of Contract.

However, you may have to pay the tax on the Automactic sliding doors.

AI Summary

Works contract tax applies to supply and installation, classification depends on contract scope and may incur tax. Whether supply and installation of automatic sliding doors is a works contract depends on the contract's scope; where treated as a works contract, WCT may be levied on the goods element. Because the supplier invoices installation separately and service tax is charged, classification as sale of goods or works contract will determine tax liability, and the purchaser may be liable to tax on the sliding doors if the arrangement is characterised as a works contract.