Navneet (Accountant) (44 Points)
13 April 2015Our company's business nature is in Building Construction, there is a coming bill from our supplier for shuttering Material on hire basis. bill coming with UP vat. My 1st question is why charging of VAT on their bill ? 2nd Question is should be charged of service tax ? , Please give the reply as soon as possiable
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 13 April 2015
@ Mr. Navneet,
Answer to your 1st Question
Supplier provides you shuttering material on hire basis where he only supplies you shuttering material. And where he didn't providing you the facility on installing the shuttering material. In VAT of all states, it is assumed to be a deemed sale. That's why he is charging VAT from you on the bill.
Answer to your 2nd Question
Point of Taxation of service tax will arise when he both sending you shuttering material and providing you service of installing it.
Regards
Piyush Tanwar
Semi Qualified CA
Mobile - 9717468521
Email - capiyushtanwar91 @ gmail.com
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