Servive exhibtion & display design and installation

This query is : Resolved

Studio WInd (Querist)
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20 August 2011 Our company studio wind is a advertising agency. We design the stall and also construct the stall in all over India in exhibitions or trade shows. The process of the stall design to construction as follows.
1) We design stall for our client
2) After approval of stall design by client we have vendors all over India who construct the stall for us under this he do every thing from material procurement, transportation, construction on site and also dismantling of stall on site.
3) The Job is over now.

My query is
1) For all this process my vendor charged service tax flat on total invoice amount. Though under his scope he provide following items... Furniture on Rental... Carpet and flooring on rental.. his transportation and execution charges... (all this comes under service)... But some items such as some branding structure, Reception table... Product podium... all this items comes under sale... So how come he charged service tax on all items...
2) And we do the same thing for our client.. and our CA asked us to pay the Vat...

We get no set off of service tax against vat.

Please guide me which tax is applicable for us for this kind of service...

Can i go for Service Tax

U S Sharma

U S Sharma (Expert)
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20 August 2011 if such items are not specifically asked in contract but in gross contract then such items sales which are used in relations to service provided are under works contract under service tax and vat both.