IS SALES TAX / VAT APPLICABLE FOR TRANSPORTERS.

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..... IS SALES TAX / VAT APPLICABLE FOR TRANSPORTERS.
Query (Issue) Started By: - Anish Gupta Dated:- 13-4-2014 Last Reply Date:- 25-4-2014 VAT + CST
Got 4 Replies
VAT / Sales Tax
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 Compo .....

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..... nents (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: 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 .....

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..... 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 & 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 an .....

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..... d 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 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 mater .....

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..... ials 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 applicable 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 .....

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..... pay service tax under reverse charge mechanism. you can also take a benefit of rebate( 40 percent taxable)
Discussion Forum - Knowledge Sharing .....

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