https://www.taxtmi.com/caselaws?id=157800 A contract for supplying, erecting, testing and handing over machinery and electrical equipment as one integrated process is treated as an indivisible works contract when the main object is erection and installation of a complete plant. Separate pricing of machinery or staged payment terms does not, by itself, convert the arrangement into a sale of goods. The decisive test is the real nature of the bargain as shown by the contract terms, surrounding circumstances and transaction structure. Where supply of materials is merely incidental to execution of the work, the transaction is not a taxable sale of machinery and equipment and sales tax is not leviable on the material value. en-us Mon, 06 Feb 1995 00:00:00 +0530 Thu, 10 Oct 2013 17:19:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=157800 A contract for supplying, erecting, testing and handing over machinery and electrical equipment as one integrated process is treated as an indivisible works contract when the main object is erection and installation of a complete plant. Separate pricing of machinery or staged payment terms does not, by itself, convert the arrangement into a sale of goods. The decisive test is the real nature of the bargain as shown by the contract terms, surrounding circumstances and transaction structure. Where supply of materials is merely incidental to execution of the work, the transaction is not a taxable sale of machinery and equipment and sales tax is not leviable on the material value. Case-Laws VAT and Sales Tax Mon, 06 Feb 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=157800