Applicability of laws

This query is : Resolved

Guest

Guest (Querist)

20 September 2013 DEAR ALL,

PLEASE SUGGEST ME FOR BELOW MENTIONED TOPIC...

ONE OF MY CLIENT IS MANUFACTURING MACHINERY AND WHICH IS EXCISE-ABLE PRODUCT ALSO I.E. THEY ARE PAYING EXCISE ALSO. NOW THEY ARE GIVING ON RENT THIS MANUFACTURED MACHINERY TO THEIR CLIENT AND AFTER SPECIFIED PERIOD SUCH MACHINERY HAS BEEN RETURNED.

NOW WHICH TAX TO BE LEVIED AND WHICH TYPE OF INVOICE TO BE RAISED AT WHICH POINT OF TIME? GIVE ME IDEA ABOUT FORMAT OF INVOICE ALSO....

AWAITING..... FOR EARLY REPLY

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 If you are expecting revenue from renting machinery shall be more than 10 lakh, then apply for service tax registration and comply with service tax compliances.

Guest

Guest (Querist)

22 September 2013 ok
thanks for that dear,

but which type of invoice and at which point of time to be issued. also the format of invoice to be issued.

coz there may be vat excise or service tax.....

MACHINERY HAS BEEN SENT OUT OF FACTORY MEANS EXCISE & VAT TO BE LEVIED....

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 September 2013 VAT is definitely not applicable as you are not selling the machinery. You renting it. So service tax shall be applicable here.

Excise is a manufacturing tax. But I am not an expert in it. So some other expert may comment on it.

Guest

Guest (Querist)

22 September 2013 thanks nikhilji...........