13 February 2010
Our Company has taken a part of Factory including Building, Machinery etc. from another Co. on lease in the state of Haryana.
Now I want to confirm the VAT is applicable on this lease charges paid by us or Service tax is applicable ?
As per Haryana VAT Act definitons see below ze(iv) transfer of right to use .....
Also please tell that can if we pay VAT on the same can we claim that amount in input vat.
Thanks
7 (ze) “sale” means any transfer of property in goods for cash or deferred payment or other valuable consideration except a mortgage or hypothecation of or a charge or pledge on goods; and includes – (i) the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (ii) the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (iii) the delivery of goods on hire-purchase or any system of payment by instalments; (iv) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (v) the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; (vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made; (zf) “sale in the State” in relation to a sale as defined in sub-clause (ii) of clause (ze) means transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract in the State; (zg) “sale price” means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed at the time of sale as cash or trade discount according to the practice, normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof and the expression “purchase price” shall be construed accordingly;
18 April 2010
Lease tax is applicable on the right touse of goods. Please check the definition of 'goods' and u will find that immovable property does not fall under the ambit of goods. It has been held by Courts (If I remeber correctly) that machines installed and fixed form part of the immovable property.
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