Hi Friend & Seniors
A partnership firm register under Vat in Delhi. He deals in Timber i.e They provide the Tember goods to the client and charges Hire charge. (t is also a rent of equipment.) They also charges 5% vat and same deposited to the deparment.
But a question rise here timber owner provide the timber goods to the needy and charges hire. it is also a service. so service tax is applicable on timber goods not vat. kindly clear the picture why they charge vat.
Dear Mr Sunil
"Timber" is a product (goods & not a service) subject to VAT specifically mentioned under the taxable goods under the VAT law (e.g, in DVAT it is mentioned to be taxable @ 5% & in Gujrat VAT it is mentioned to be taxable @ 12.5% ) & hence is welll covered under the VAT law.
There is no part in this transaction which could be said to be a "service" within the meaning of any of the "tabulated taxable Services" as per the Finance Act, 1994.
Hence, No service tax is leviable.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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