ATUL (BUSINESS) (42 Points)
12 October 2008I am having a vehicle maintenance busineess (two Wheeler) i am registered under MVAT, my query is i am providing services of vehicle polishing during this i require some raw material as an input whic i purchase form the unregistered dealer
i raise two bill one is for VAT & the other is for labour charges,
shall is need to Change my registration form reseller to Works Contract
as i am providing material with service
Please Clarify me,
Thanks
Atul
CA V. Mohanakrishnan
(Chartered Accountant)
(401 Points)
Replied 12 October 2008
it is not necessary as far as you are birfurcating the material sale and labour charges separately.
In some cases you may have to charge a composite bill where material is included. In such case registration as works contract would be required.
However, given you also have a service component you may be subject to service tax act (depends on various conditions)
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