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Applicability of Service Tax on sale of Carbon Credit

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rajkumar

rajkumar (Querist)
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23 August 2009 kindly clarify if service tax or any other tax is applicable on sale of carbon credit?
regards
Rajkumar

SARATHY RP

SARATHY RP (Expert)
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24 August 2009 Dear Mr Raj Kumar,

The carbon credit is sold to the needy customer after establishing a contract. Hence, there is a sale and consequently this will fall under local VAT Act. Many VAT Acts have included goods of intangible nature / incorporeal nature.

Since the taxable service is not provided, it will not come under the Service Tax scheme.

Thanks.
Sarathy

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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30 August 2009 pl explain what is carbon credit, how it is generated, how sold, who sales and who buyes, benifit of sale / purchase

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