Ritesh Jain (CA, CS in Job) (675 Points)
04 July 2014A company has entered ino a contract of supply and installation of equipment.
The contractor raises the bill of supply as 100% material and for installation the bill will be raised seperately.
My queries:
1. Will material bill be treated as WC bill or only supply bill.
2. WC(TDS) should be deducted from bill or no.
3. BCC cess has to be deducted or not.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 04 July 2014
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 05 July 2014
Dear sir,
Since there is separate bill for supply of material and seperate bill for labour works the same needs to be construed as divisable contract.
Further, like this transaction documentation plays a vital role i.e having two separate work orders and payments also received seperately and not on % of completion of the contracts.
Accordingly, it may not be treated as "Works Contract" hence no liability under Service Tax.
CAclubindia
