Applicablity of vat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2011 We hired a generator for monthly rental basis.While submitting the bill he claimed VAT on hire charges.

Whehter VAT is applicable for the same?

CA ASHISH GUPTA

CA ASHISH GUPTA (Expert)
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08 November 2011 In all most all stats leasing is also included in the term sale. So Vat will be leviable on lease charges. Monthly rental of generator is also a leasing charges and Vat will be applicable.
How ever if there is a rent without transfer of possession then VAT will not be applicable and Service tax will be applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2011 Without Transfer of possession means?

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CA ASHISH GUPTA

CA ASHISH GUPTA (Expert)
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08 November 2011 In your case VAt will be applicable.