Regarding VAT

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2010 Dear Sir,

We have given some hire scraffolding matarial to other party,now I want to raised the bill for hire charges of Scraffolding matarial.Now I am confused about which tax I raised whether Service Tax or Vat.
We taken Scraffolding matarial on hire from other party which charges Vat @ 4% on this bill,
Pls advice me that Tax I levised on hire cahrges of scraffolding matarial
It Very urgent

Sanjeev Kumar

Sanjeev Kumar (Expert)

24 April 2010 It's a matter of facts i.e. if you given that goods with effective control and possession then VAT would be applicable but if effective control & possession with you then only service tax would be appicable.

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2010 Dear sir,
Thanks for your valuable opinion,now I am confuse,the possession of scraffolding matarial is our when work is over then company return our scraffolding matarial,so pls advice me whether we levised Vat our Service tax,Because the possession of the goods remain the same
Waiting for your vailable opinion

Sanjeev Kumar

Sanjeev Kumar (Expert)

24 April 2010 now, you can decide base on business Facts i.e. if principaly you are a service provide then pay service tax and / or if your business of sales and purchases then can pay VAT. It is advisable fix the transaction through agreement stating facts and charging taxes.

Sanjeev Kumar

Sanjeev Kumar (Expert)

24 April 2010 generally its called commercial agreement

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