24 June 2011
I am seeking clarification on the following.
Karnataka Works Contract. The company is executing fire protection contracts. Is it possible to charge 5% on installation of pipes(scheduled goods) and 14% on other materials in a composite contract.Certain Assessing officers have allowed this dual taxation in works contracts where steel pipes are involved. E.K.Haridasan
24 June 2011
Mr Haridasan, In Karanataka the goods incorporated in a works contract can not be segregted as per their tax rates.The entire value of the goods used in the work is to be charged a single rate,e.g.in this case 14%. MJK
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