We have laid gas pipe line for manufacturing of ceramic sanitary ware in the year 2009-10. Now we want to use same gas pipe line for transportation of gas to other company.
My query is whether we have to charge VAT on total transaction value? If yeas at what %?
05 May 2011
1) Generally right to use goods is considered as 'deemed sale' on which VAT is levied. You may pl refer the respective state VAT law for the taxing provision and rate. 2) Again,the said arrangement may attract service tax provisions also. Pl check it under the head 'supply of tangible goods'.