applicability of VAT

[Guest]

sir ,

i would like to know the rule position whether Value Added Tax (VAT) is to be recovered for contingent billls like supply of shamianas for functions ,supply of sound systems,supply of furniture and water drumd etc.If so what is the percentage of VAT to be recovered from the bills.  

[YAGAY andSUN]

On deemed sales, VAT will be charged @ 14%.

[Achyut Kale]

 

Is it a sale of Material or providing shmiana and sound systems as services for event?

 

If it is service, then instead of VAT, Service tax is applicable @ 10.30%

 

AI Summary

VAT applicability on event supplies: determine whether transaction is sale of goods or a service to identify correct tax treatment. Applicability of VAT to event-related bills depends on whether each transaction is a sale of goods or a provision of services: deemed sales attract VAT as advised, whereas activities characterised as services (such as hiring shamianas or sound systems) fall under service tax rather than VAT.