Taxability of a transaction

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Lakshmi (Querist)
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05 January 2008 I would like to know whether "Electrification of assembly hall" is a taxable transaction under MVAT. Would it be considered to be a works contract? Sale of electricity is not considered to be a sale under CST ? Is there any similar provision in case of VAT ? PL reply urgently.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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11 January 2008 Sale of Electricity and sale of materials reuired for electrification are totally different. Electricity is out of the purview of VAT. Electrical goods are taxable.
Electrification of assesmbly hall seems to be an indivisible works contract (if it is)and certainly transfer of property in goods will be made in execution of Contract. Hence, the contract will fall under the ambit of Works Contract and will attract VAT.