15 November 2011
Dear Sir Very thanks for your reply. If Contractor-B is registered in Maharashtra as manufacturer and EPC contractor, Buyer-A is a Power Plant in Haryana and some equipment Manufacturer-C is in Maharashtra. Contractor-B send some equipment by term of sale-in-transit from Manufacturer-C to Buyer-A. Buyer-A get the excise modvat on Manufacturer-C's invoice. In this case Contractor-B will pay what type Trade Taxes (in addition of Income tax), where and on which amount.
15 November 2011
In ur case it appears that contractor B is working as commission agent who has procured material on behalf of A (buyer) from C (manufacturer.
If B(Contractor) has also raised invoice to A (Buyer) for differential amount (Rs. 600/-). Rupees 600 is subject to income tax and it may also be subject to service tax under business auxiliary services if it exceeds rs 10 lac.
Note that in above case, invoice for sale of goods should has been raised by C (manufacturer) in the name of A (buyer).