10 December 2012
Say, a dealer M who sells Sunboard (a type of Plastic Sheet used in advertisement arena) to a dealer N against their purchase order. Later N placed a separate order to M for fitting of the Sunboard on their specified structure. Does it fall under the purview of Work Contract? Can Sales Tax department charge Work Contract Tax having considered that the dealer have bifurcated the order with an intension to avoid higher rate of taxation?
11 December 2012
When it is under two different contract, there should not be a problem. Even if the dept does not agree you have a strong favourable case.