TMI BlogComposite supplyX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear expert, I would like know what is the rate of tax for contract under painting work. The paint is under 28% and the labour under 18%. Here which one is principal supply. Thanks in advance. - Reply By Kishan Barai - The Reply = Principal supply is paint for painting work, so 28% according to my view. - Reply By Vamsi Krishna - The Reply = Generally for composite tax cases, principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of tax only applies. Its better to enter works contract with the contractor where he will get paint and bill you. In such case 18% tax shall be levied. (I hope the painting is for construction activity,pls read Works contract definition) - Reply By THYAGARAJAN KALYANASUNDARAM - The Reply = Thank u do much for your kind response. - Reply By KASTURI SETHI - The Reply = Dear Querist, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the example cited by you, GST @18% is applicable. - Reply By Kishan Barai - The Reply = If your are doing contract work for Painting Company then 18% Or But if you do painting work for other house / Office then to purchase paint 28% would be Applicable for your services 18% Please correct me if I am wrong - Reply By KASTURI SETHI - The Reply = Sh.Kishan Barai Ji, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, You are absolutely right. - Reply By KASTURI SETHI - The Reply = In such situation ITC overflows and no refund is admissible. - Reply By Vamsi Krishna - The Reply = If you are executing works for Immovable property it is termed as Works contract and 18% rate is applicable (Ref 2(119) for definition of works contract). If you are not covered under the above definition, you wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll fall into composite supply under sec.8 where principal supply concept will come into picture. Under composite supply since supply is rated @ 28%, your further works on it may also be charged under 28%. - Reply By KASTURI SETHI - The Reply = Sh. Vamsi Krishna ji, Thanks for throwing more light on the issue. - Reply By Vamsi Krishna - The Reply = Its pleasure to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of forum having experts.. welcome sir.. - Reply By THYAGARAJAN KALYANASUNDARAM - The Reply = Dear expert, Thanks a lot for your valuable instant reply and support sir. - Composite supply - Query Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 1-8-2017 Goods and Services Tax - GST - Got 11 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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