IF A BUYER PROVIDES MATERIAL FOR PRODUCTION OF A GOOD SAY (CAR) TO A SELLER...... AND THE SELLER CHARGES RS.500.
THIS IS A CASE OF HIRE PURCHASE OR COST OF LABOUR ?
Gaurav Mohnani (OWNER) (536 Points)
18 June 2012IF A BUYER PROVIDES MATERIAL FOR PRODUCTION OF A GOOD SAY (CAR) TO A SELLER...... AND THE SELLER CHARGES RS.500.
THIS IS A CASE OF HIRE PURCHASE OR COST OF LABOUR ?
C.A SUVAJIT SAHU
(CA ( In Practice ))
(708 Points)
Replied 18 June 2012
hi gaurav.........
first of all it is not a hire purchase contract.......
secondly, where material is supplied by the buyer and the seller charges 500 ,it is clear case of labour contract.
if material is not suppplied by the buyer and the seller buys material from outside makes the product , then it is a case of sale of goods not a contract.
Mohit Bhownani
(Student)
(294 Points)
Replied 18 June 2012
This is a case of Cost of Labour.
Because in Hire Purchase the buyer gets the good say (car) in emi basis, means he pays for the car in instalment.
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