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Contract Business: Applicable rate of interest

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(Querist)
18 July 2010 Dear Sir,

My friend is having a business of contract nature where he prints flex/hoardings/offset printing etc on contract basis. All the raw materials are supplied by the clients. All he does is using his machine, he prints on the materials as per the designs provided by the clients.

Please let us know about the applicability of VAT or Service Tax on the same. The business is in the state of Assam.
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CA Mohan Agarwal

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CA Mohan Agarwal (Expert)
11 June 2011 If printing is on flex supplied by customer, it may attract service tax. If own material is used, it attracts both service tax and vat.
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