Service tax /VAT on transport charges

This query is : Resolved

Rajesh (Querist)
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30 January 2011 We deliver scaffolding on sale and hire basis too. It is agreed with the client that transport charges incurred by us for delivering goods will be reimbursed by the client at actuals. Accordingly, we recover transport charges from our client for the goods delivered to him. Is service tax or VAT is chargeable on such trasnport charges?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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30 January 2011 Transportation through own vehicle in not taxable under service tax.

If transport charges is part of invoice, VAT ia applicable.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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30 January 2011 Your Transportation charges has been added in rate of material and you are charging all tax on that meterial.

if you are showing cartage in invoice then vat also applicable.

service tax also applicable on cartage.

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