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Informative

‘Powder Coating’ for Yokes, Links, and Tubes Constitutes Works Contract, Liable to VAT: Madras HC

Update / Judgement Date

04 Oct 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Madras High Court ruled that powder coating of yokes, links, and tubes qualifies as a works contract under VAT laws. The court clarified that since powder coating involves an element of both goods and services, it falls under the ambit of works contracts, making it liable for VAT. The ruling reinforces the principle that composite contracts involving the supply of goods and services are subject to VAT.