Distinguish between composite and mixed supply
Answers
A mixed supply means, supplies of goods or services or a combination of both, generally made in conjunction with each other and where such supply doesn’t constitute a composite supply.
Example of Mixed supply : The following illustration given in the Education Guide of CBEC referred to above can be a pointer towards a mixed supply of services: -
“A house is given on rent one floor of which is to be used as residence and the other for housing a printing press. Such renting for two different purposes is not naturally bundled in the ordinary course of business. Therefore, if a single rent deed is executed it will be treated as a service comprising entirely of such service which attracts highest liability of service tax. In this case renting for use as residence is a negative list service while renting for non-residence use is chargeable to tax. Since the latter category attracts highest liability of service tax amongst the two services bundled together, the entire bundle would be treated as renting of commercial property.”
Composite supply means a supply of goods or services or a combination of both, which is naturally bundled together and supplied with each other in the ordinary course of business, and one of which is a principal supply.
Example of Composite supply: In a case of transportation of goods, the supply of goods, the packing material, the insurance is a composite supply , in which the supply of goods is a principal supply, and the packing material or the insurance cannot be supplied separately if there is no supply of goods.
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A mixed supply means, supplies of goods or services or a combination of both, generally made in conjunction with each other and where such supply doesn’t constitute a composite supply.
Example of Mixed supply : The following illustration given in the Education Guide of CBEC referred to above can be a pointer towards a mixed supply of services: -
“A house is given on rent one floor of which is to be used as residence and the other for housing a printing press. Such renting for two different purposes is not naturally bundled in the ordinary course of business. Therefore, if a single rent deed is executed it will be treated as a service comprising entirely of such service which attracts highest liability of service tax. In this case renting for use as residence is a negative list service while renting for non-residence use is chargeable to tax. Since the latter category attracts highest liability of service tax amongst the two services bundled together, the entire bundle would be treated as renting of commercial property.”
Composite supply means a supply of goods or services or a combination of both, which is naturally bundled together and supplied with each other in the ordinary course of business, and one of which is a principal supply.
Example of Composite supply: In a case of transportation of goods, the supply of goods, the packing material, the insurance is a composite supply , in which the supply of goods is a principal supply, and the packing material or the insurance cannot be supplied separately if there is no supply of goods.