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.
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.
CA Nitin Wadhwani
(Expert)
13 March 2009
What is scaffolding?
CA.SHAHZAD SAYYED
(Expert)
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.
CA Nitin Wadhwani
(Expert)
15 March 2009
Yes.
VAT is applicable @ 4%.
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?
CA Nitin Wadhwani
(Expert)
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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