Supply of Goods

[P Ovhal]

Supply of goods transactions on which VAT is not chargeable, service tax shall be applicable?

AI Summary

Clarifying Service Tax vs. VAT on Goods Supply: Understanding Composite Supplies and Works Contract Rules 2006 A discussion on the applicability of service tax and VAT on the supply of goods where VAT is not chargeable. Participants clarified that service tax applies to taxable services, not goods, unless it's a composite supply involving both goods and services, which would follow the Works Contract Composition Rules, 2006. It was noted that not all goods supplies are subject to VAT, as exemptions may apply based on the dealer, buyer, or goods. The importance of checking the chargeability under relevant provisions was emphasized, and it was highlighted that VAT rates can vary widely.