13 March 2009
A firm is engaged mainly in manufacture & rental / hire of scaffolding to its clients. Kindly, advise as to whether VAT or Service Tax is applicable to scaffolding rental / hire charges with reference to applicable provisions of the ACT & any decided cases. Thank You.
14 March 2009
Scaffolding is structure of steel (steel bamboos) that is put around the building for working of labour; your can find scaffolding mainly at construction sites.
16 March 2009
Thank you Nitin for your reply. The firm has been charging VAT @ 4% & 12.5% respectively, as applicable, on scaffolding hire charges. Even assessments have been completed under the earstwhile sales tax laws. But now VAT dept is saying that service tax applies to hire charges. So we are surprised by its views. Can you quote some case-laws regarding the matter?