Either vat or service tax

SUNIL (ACCOUTANT) (167 Points)

16 September 2011  

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.