We are a commercial vehicle dealership & indend to collect 'handling charges' at the time of vehicle sale. As per AP VAT (Andhra Pradesh), is VAT applicable to 'Handling Charges' during vehicle sales?
If YES; kindly provide any kind of proof in terms of any GO or Act Rule.
If NO; is Service tax applicable on the same?
Mr Anil V ,
Handling charges are not exempt from the total reeipts(not deductible) while calculating the taxable turnover. So, if you collect it along with the invoice issued for vehicles and by way of cheques,you will have to pay tax on it. I know what that handling charges means.It would be better if you entrust it to an agent(or put it that way) and collect it in that form.It is not in the list of taxable services. ST may not be attracted.
MJK
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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