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

Advertising Company Queries Tax Approach for Temporary Stall: Service Tax vs. VAT Implications Explored A private limited company in the advertising business, which also engages in events and promotions, plans to fabricate a temporary stall for a client, billing it as hire charges and paying service tax under that category. The stall will be dismantled and disposed of after the exhibition. The query seeks advice on the correctness of this approach and the applicable tax rate, including any VAT implications. The response suggests a detailed study to determine the correct taxable service category, which will clarify eligibility for any exemptions.