SALE OR WCT

Deepak Gadgil (Chartered Accountant) (19 Points)

10 May 2007  
Friends

I have following problem on hand

1) I purchase a gas kit to be fitted to motor vehicles from a vendor on Maharashtra he bills me the kit in 2 parts one is cylinder on which 4% vat is charged - say Rs. 104 incl VAT

2) & the other is conversion kit on which 12.5% vat is charged - say Rs. 112.5 incl VAT

3) the bill is single TAX INVOICE for both the above items.

4) What I do is I fit these two separate items into motor vehicles at my workshop

5) I want to raise a single bill for all this

The Query - whether this is a sale of goods? if yes at what rate the VAT is to be charged? pl provide me with shedule entry no for the saem.

IF it's a works contract at what rate VAt is to be charged & whether any deduction is permissible?

Regards

CA Deepak Gadgil
Solapur
0217-2318152 / 6450752 / 9422068273 / 9325616287