Vat implication - rate of tax

[rathna prakash]

My client is a pvt ltd company and doing advertising business. he also does events and promotions. He is fabricationg a stall for one of his client and he propose to raise the bill has Hire charges and pay service tax under that category. The stall will be dismantled and disposed by my client upon completion of exibition. Do suggest whether what he propose to do is right and if so what is the rate of tax he has to pay. Is their any vat implication on this transaction? The stall is a temporary structure.

[Surender Gupta]

Only after a detailed study of facts would suggest the correct category of taxable service. Once the correct category is determined, you may or may not be eligible for an exemption accordingly.

AI Summary

Service tax classification dictates whether hire charges for temporary stall fabrication attract tax and applicable rate.
Whether service tax and VAT apply to charges for fabrication, hire and dismantling of a temporary exhibition stall depends on factual classification of the activity into the correct taxable service category; a detailed factual inquiry is required to determine applicability of service tax, any exemption and the rate, and to assess VAT implications based on the goods-versus-service characterisation.