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VAT TAX on car hirecharges

This query is : Resolved 

28 April 2009 dear sir,
the facts is that ourcompany(Infinite shipping&logistics Ltd) acting as a pureagent on behalf of occeaneering international.
my query is that when we collect car hire charges from principal for providing services from one place to another place for job work, whether that amount attract vat, if it is attract under which section it is taxable and also tax rate.
please clarify my doubt

Yours
Narendra Kumar

28 April 2009 You will be liable to Service tax & not VAT.. Rate is 10.30% after 24-02-09



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