VAT on hire charges - hiring of vehicle in Assam

[RAJAGOPALAN R]

Commissioner of Sales Tax Assam has directed our company to deduct VAT on hire charges paid for hiring vehicles supplied by our contractors under various agreement executed by the company. Kindly inform whether we should accept the order and deduct the VAT at 13.5% and pay the amount to State govt or go for a writ against the said order.

AI Summary

Assam Company Directed to Deduct 13.5% VAT on Vehicle Hire Charges; Seeks Advice on Compliance or Legal Challenge The Commissioner of Sales Tax in Assam has instructed a company to deduct VAT at 13.5% on hire charges for vehicles provided by contractors under various agreements. The company seeks advice on whether to comply with this directive or challenge it through a writ. A respondent suggests that the determination depends on the contract's nature and specific facts, recommending consultation with a local expert for guidance.