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

Automatic Sliding Doors: Supply and Installation Classified as Works Contract, Subject to Works Contract Tax (WCT) A query was raised regarding whether the supply and installation of automatic sliding doors fall under a works contract. The supplier charges Rs. 30,000 for installation with a 12.36% service tax, and the buyer includes installation costs in the purchase order. The response clarified that Works Contract Tax (WCT), part of VAT/CST, applies to the goods. The classification as a sale of goods or works contract depends on the contract's scope, and tax may be payable on the sliding doors.