VAT & SERVICE TAX

This query is : Resolved

Deepak Patel (Querist)
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12 April 2011 If goods sale as FOR basis and Vat paying also on freight charges than service tax is applicable or not . Example

3000 material cost
5000 transportation
total vat on 8000 5%= 40 means total bill 8040

Are service tax number is required for me for this particular work.? when i have to pay vat also on freight charges.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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12 April 2011 VAT and service tax are mutually exclusive.

Where VAT is payable you cannot escape that by paying service tax and vice versa.

If you engage a GTA for transportation of your goods and you are liable [ you are a company/ factory etc as specified] to pay him under reverse charge mechansim you would have to pay ST on 25% of the transportation. If buyer is reposnsible then he would be liable to pay
ST ius payble by the GTA service