TMI BlogIS SALES TAX / VAT APPLICABLE FOR TRANSPORTERS.X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, Please help me. Firstly I would like to inform you that my firm is a Govt. Contractor (Railways Defence). Now, is Sales Tax / VAT or Service Tax is applicable on us because we Transport Railway Components (Used New Spare parts of Locomotives) on annual contract basis. As of now I do think that Service Tax is exempted as per their exempted list. - Reply By vidhi bansal - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = No, Your firm is not exempt from payment of service tax. Because it falls under exclusion part of exemption.(service provided by govt.in respect of Trasportation of goods passengers ) . - Reply By rishi mohan - The Reply = Sales/vat shall be applicable on the goods supplied or transported. Vat at an appropriate rate shall be applicable. - Reply By Anish Gupta - The Reply = Dear Rishi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vidhi, First of all thanks for your cooperation. But the nature of job done is purely transportation i.e. on specific work Orders we just place a Truck of the desired capacity and the material loaded by us is Govt. property and not my i.e. I only place the Lorry. Suppose I am given a WO from Railways to bring an Transformer of Railways i.e. from Northern Railway to Eastern Railway. The property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying at Northern Railway is of Govt. of India and after transportation to Eastern Railway the same again remains a property of Govt. of India. My job is just that of a Goods Transport Agency. That is I am not transporting materials from a supplier or manufacturer. Waiting for your replies.... - Reply By vidhi bansal - The Reply = service tax will levy ,however vat /sales tax would not be applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able because you are not not selling any thing. however on that goods that are transported by you may be liable for vat-as per condition. as per discussion you are providing the transportation service to govt. so you are liable to pay service tax under reverse charge mechanism. you can also take a benefit of rebate( 40 percent taxable) - IS SALES TAX / VAT APPLICABLE FOR TRANSPORTERS. - Query ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Started By: - Anish Gupta Dated:- 13-4-2014 Value Added Tax - VAT-CST - Got 4 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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