service tax or vat or excise and which service, Service Tax

[PRAJAPATI JAGADISH]

SIR we are furniture manufacturer and work contractor for making furniture and in following cases what is applicable (i.e. service tax VAT Excise Duty) and situations are following
1. own material and make furniture thereafter sold to customer.
2. own material and entered into a contract for making furniture (movable) on their sites.
3. own material and entered into a contract for making fixtures (immovable) on their sites.
4.Material provided by other party and labour provided by us and furniture is movable.
5. Material provided by other party and labour provided by us and fixtures is immovable.

Posts / Replies

[Pradeep Khatri]

On point No. 1 VAT/CST will be applicable.

On Point No 2, 3 WCT under VAT Act on material and Service tax under WCT Service will be applicable.

On Point No. 4 Service Tax on WCT service will be applicable.

On Point No.5 VAT and Service Tax both will be applicable.

[PRAJAPATI JAGADISH]

thanks but i have stills a confusion regarding service tax that we only provide labour so under which service it will be taxable

[Pradeep Khatri]

Under Works Contract Services.

[PRAJAPATI JAGADISH]

again tanx but if there is no contract between the parties than what will be applicable in earlier situations and  we provide only labour the under which service it will be taxable

[Pradeep Khatri]

On labour charges you would have to pay the service tax.  Kindly check the Works Contract Services in details.

[sanjeev bajaj]

I am not clear, how VAT is leviable in point no. 5.  As there is no transger of property in goods as the same belongs to the owner

[Pradeep Khatri]

Under Composition Scheme as applicable w.e.f. 01-04-2013 VAT(WCT) will be applicable.

[sanjeev bajaj]

Option of composition is different matter.

Suppose I am not a composition dealer, than in normal course, no vat leviable.

[Pradeep Khatri]

Facts, Nature and scope of work would determine the taxability of VAT (WCT), Service etc.

[S S KONAR]

Applicability of Taxes will be as under:

For Sl No.

1. VAT or CST according to the nature of sales   (This is is a case of sale of goods)

2. VAT and Servise Tax both are applicable. In both case abatement is available (This is a case of Works Contract)

3.                                     DO

4.Only Service Tax is applicable. (This is a case of laboure contract)

5.                Do