Rishubh Mathur (Analyst -Taxation) (442 Points)
29 August 2011hi friends!
Please clarify where a company has been engaged as agent for input procurement/ supply for a large project by the main contractor, whether AS 2 (treating supplies as inventory) is applicable or AS 7 (treating it as contract) ???
CS Bijoy
(Expert)
(6394 Points)
Replied 30 August 2011
Here the service is come under contract, so as 7 will be applicable.
Dhanabal Ramasamy
(CHARTERED ACCOUNTANT)
(105 Points)
Replied 30 August 2011
Hai..
I dont think supply of material to main contractor is any kind of service as meant in the AS 7. It is to be treated as inventory and AS 2 will be applicable.
krishnamohan
(sr.auditor)
(49 Points)
Replied 17 October 2015
AS 7 will be applicable not the AS -2
and above all the Main contractor has to entrust the Work with Work order not any P.O(Purchase Order) so the TDS as contracts of sub-contractor's applicable and Service tax should be levied by the service render for work order
CAclubindia
