Neeraj Kumar Giri (ACCOUNTANT) (190 Points)
22 September 2014Respected Sir,
Kindly give your valuable advice in this regard.
A business who use to provide heavy vehicle like JCB Machine, Tipper etc. to the factory on Contract basis. i.e. In the work order it is mentioned that " The engagement of Vehicle and Equipment on Contract Basis", Now please tell me under which head should he register before service tax.
(A) Work Contract or (B) Supply of tangible goods services.
Please reply its urgent
JSS
(Practice)
(58 Points)
Replied 23 September 2014
Dear Mr. Neeraj,
A transaction will be termed as Works Contract only when there is transfer of property in goods, i.e., supply of goods along with service.
Hence, in the present situation, please mention whether there is any supply of goods involved. If so, it will be taxable under "Works Contract Service".
Otherwise, the service is taxable under "Supply of Tangible Goods Service".
Hope this clarifies your query.
Neeraj Kumar Giri
(ACCOUNTANT)
(190 Points)
Replied 23 September 2014
Respected Sir,
There is no transfer of goods only Supply of vehicles. It means it will cover under " Supply of Tangible Goods Services".
One more question how to prove that the vehicle were given under Transfer of Rights to use. The effective control was under Factory's hand.
Please Specify how to make work order or agreement. Important point of TRU.
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