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Vat and service tax

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This query is : Resolved

H S Acharya (Querist)

11 August 2013 When a dumb pontoon barge (floating marine craft) is taken on charter service tax is applicable and owner charge service tax. We have been advised by our consultant that marine craft taken on charter with manpower it will attract service tax and if it is dry charter without manpower it attracts sales tax. Is it correct that VAT is applicable in such deals.? If so whether service dept later on demand service tax? Does rule permit charging both VAT and Service Tax?
If VAT is applicable what is the percentage?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

12 August 2013 Once you charter a barge to some one with their full control it amounts to leasing and VAT is leviable on the rentals received from the customer. If its operation is in your own control(with your men on duty) the amounts received become hire charges and not taxable under VAT laws.Then it is chargeable with ST only...mjk

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