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Service tax applicability

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(Querist)
03 July 2012 My client is engaged in furntiure sale. he doesnot want to beome vat number holder but ready to pay service tax on labour charges amount as like civil contractors.is this type of taxation is correct.
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Rajesh Dubey

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Rajesh Dubey (Expert)
03 July 2012 VAT would be applicable if there is a sale transaction. If the dealer doesn't applies for VAT registration, he would be considered as an unregistered dealer & accordingly will not be able to claim VAT input credit on purchase.
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