Tax applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2010 What is the tax implication when an imported machinery originally brought in on lease terms later on bought by the lessee from the lessor-owner who executes a purchase agreement and delivery note from abroad?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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02 January 2011 VAT 4% is charged as additionla duty when goods is brought in to india, whether by purchase or lease.

Since the import duty was paid at the time of bringing the machinary in india, I donnot think any additional tax is payable after purchase agreement.