VAT & SERVICE TAX

anil kumar (service) (45 Points)

15 December 2007  

 Whether hiring of taxis from transporter attract both  DVAT and service tax ? Some transporters have got registered themselves with DVAT and now claim that VAT @ 12.5% is also payable in addition to service tax @ 12.36 on the tax invoice. Is it correct. Clarify with supporting caselaw or the provisions (if possible).