25 March 2009
We have hired a porta cabin ( Temporary structure) from a vendor and he is charging CST or VAT as we have taken right to use the cabin. Is it correct.
In another case we have got made / fabricated a setup in a conference. Electric wiring, wooden wall, synthetic carpet , LCD display etc. We have used this set up for three days and vendor has taken back the entire structure with equipments. Vendor has charged CST @ 2%.
As per our knowledge he has to charge service tax but he has charged CST.
What is "RIGHT TO USE" and its cover in service tax or sales tax (VAT or CST).
01 June 2009
"Right to Use" tarnsaction falls into defination of sale. where u can hire machinary etc for use. if delaer is registered in Sale tax he can charge VAT.and u can take credit for same.