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INSTALLATION OF AIR HANDLING UNITS

05 April 2018

please tell the procedures applicable in case of installation ofair handling units where tax on ac hsn code 8415 is 28%but if we treat it as works contract under hsn 995463 then tax rate is 18%

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3 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 05 April 2018

It's really very tuff query But still I would like to give my view point on this

firstly we see the definition of work contract
As per sec. 2(119) of the cgst act clearly and precisely states that "works contract" means a contract for building, construction, fabrication, completion, erection, installtion,fitting out, improvement'maintenance, renovation, alteration or commissioning of immovable property.

So if such Air handling fixed to building & & cannot be dismantled, or re marketable , & become the part of immovable property, then we can treat it as Job work contract

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Gagan Singla (564 Points)
Replied 05 April 2018

sir jee mai appkeee baat se shat prishat sehmat hu, but hamari purchase 28%ki hai jaise ac parts like compressor humidifier to to hamara refund nikal ayega, and whether this would be acceptable to govt.