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Vat on transportation or carting charges

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atul (Querist)
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06 August 2011 Sir, If a dealer purchase any material like metal, murum, sand etc. from a registered dealer and the seller supply the same with transportation by his own vehicle. He raise the bill for total cost of material i.e. cost of material plus transportation charges and charge VAT as applicable on total cost of material as said above.
I wish to know that, any service tax attracts in this type of transaction and is required to pay Service Tax? Or Is the VAT levy-able on transportation charges when the transportation charges is higher than the cost of material. In which section of MVAT Act I can find the related information, please guide me.

PRAMOD PANDIT M.COM , CA FINAL

PRAMOD PANDIT M.COM , CA FINAL (Expert)
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06 August 2011 It is a general practise in market that material invoice should be separate with vat
and transport charges are separate with service tax
since service tax should be collect on service of transport and not on goods cost!
and simultansely vat also collect on taxable goods and not on service provide since it is not a work contract or job contract!

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