Sales Tax Return Filing in case inter state purchase for own consumption

[Sanjib Dutta]

Dear Sirs,

We are providing maintenance service to a company in Telangana State. For the purpose of our maintenance service, we are making some interstate purchase & receiving at Telangana. This purchases are totaly for our own consumption and not for resale.

In such case what will be the tax implication? What will be Return Filing procedure? i.e. should I mention my purchase amounts made from other states? Kindly advise.

Regards,

Sanjib Dutta

[Ganeshan Kalyani]

In my view you are provider of maintenance service and does deal into purchase and sale of goods. The purchase of consumables is only to use it for the purpose of fulfilling maintenance service. Thus I opine that you should register for service tax and comply under the act. There is no need to register under vat to comply under the vat act.

AI Summary

Service tax registration required for maintenance providers buying interstate consumables for use; VAT registration not necessary.
A maintenance service provider making interstate purchases of consumables received in the service location for use in rendering services (not for resale) should obtain service tax registration and comply under the service tax law; such consumable purchases do not by themselves require registration under the VAT regime.