https://www.taxtmi.com/forum/issue?id=108584 Supply of construction materials to an independent developer with VAT paid at purchase does not create a reverse-charge service tax liability on the supplier; the contractor provides the taxable construction service and charges service tax on his bill. Where materials are supplied separately and VAT paid, the arrangement is not a composite works contract for WCT, so WCT does not arise on the material supplier. The supplier cannot claim service tax input credit for the contractor's service. Retain VAT invoices and contractor bills to substantiate the separate supplies; comply with TDS obligations as applicable. en-us Tue, 12 May 2015 09:09:10 +0530 Thu, 23 Jan 2025 15:56:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=108584 Supply of construction materials to an independent developer with VAT paid at purchase does not create a reverse-charge service tax liability on the supplier; the contractor provides the taxable construction service and charges service tax on his bill. Where materials are supplied separately and VAT paid, the arrangement is not a composite works contract for WCT, so WCT does not arise on the material supplier. The supplier cannot claim service tax input credit for the contractor's service. Retain VAT invoices and contractor bills to substantiate the separate supplies; comply with TDS obligations as applicable. Discussion-Forum Service Tax Tue, 12 May 2015 09:09:10 +0530 https://www.taxtmi.com/forum/issue?id=108584