Supply & installation of sliding doors will be covered under works contract, VAT + CST

[umesh kumar]

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

 

 

Posts / Replies

[Pradeep Khatri]

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.