VAT & SERVICE TAX
This query is : Resolved
Deepak Patel
(Querist)
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.
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
(Expert)
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
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
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