Which tax (VAT/SerTax) applies to scaffolding rental/hire?

This query is : Resolved 

13 March 2009 A firm is engaged mainly in manufacture & rental / hire of scaffolding to its clients.
Kindly, advise as to whether VAT or Service Tax is applicable to scaffolding rental / hire charges with reference to applicable provisions of the ACT & any decided cases.
Thank You.

13 March 2009 What is scaffolding?

14 March 2009 Vat is Applicable on Hire Purchase Transaction, Instalment shall be taxable

14 March 2009 Scaffolding is structure of steel (steel bamboos) that is put around the building for working of labour; your can find scaffolding mainly at construction sites.

15 March 2009 Yes.
VAT is applicable @ 4%.

16 March 2009 Thank you Nitin for your reply. The firm has been charging VAT @ 4% & 12.5% respectively, as applicable, on scaffolding hire charges. Even assessments have been completed under the earstwhile sales tax laws. But now VAT dept is saying that service tax applies to hire charges. So we are surprised by its views. Can you quote some case-laws regarding the matter?

17 March 2009 Since the department itself is relieving you from the payment of VAT, it's good for you na.


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