09 May 2008
Hiring/chartering of ships have been held to be falling under 194C by the Mumbai ITAT. By the same ratio, 194C is applicable.
However, if both possession and control of the halicaptor is passed on to the hirer, 194I will be attracted. In this case VAT will also be attracted as deemed sale.
Since, normally, running & maintenance expenses, provision of pilot will be responsibility of the person offering the halicaptor, it will be a contract for transport of goods and passengers.
CAclubindia
