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Rate of tax applicable on work contract for printing and supply of flex, vinyl, signboards and installation
M/s UNIVERSAL MEDIA CO. Vs THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-1
Karnataka VAT Act, 2003 – rate of tax applicable on work contract for printing and supply of flex, vinyl, signboards and installation – taxable at the rate 5.5% or 14.5% under Sixth Schedule to the Act
HELD – The entry “printing: block making” consists of two activities separated by semicolon mark is independent of the other, these two activities of printing and block making are not inter connected or interlinked with each other - The Commissioner ought to have examined whether the installation work carried on by the assessee is a composite contract attracting Sl. No.23 of the Sixth Schedule to the Act.
The Commissioner proceeded on the ground that the contract falls under Entry 23 of the Sixth Schedule without assigning any valid reasons – The Commissioner of Commercial Taxes shall examine this aspect and a decision shall be taken in accordance with law – the impugned Commissioner's clarification is quashed and set aside – assessee petition allowed by remand.