VAT is charged on the amount received for providing right to use the property. Lease agreement gives right to use the property and hence, liable for VAT.
Thanks but We are using property on lease but landlord never charged us VAT on the Rental amount!!! So, i am confused, how VAT is liable to charge over such amount?? I am talking about Gujarat VAT
09 April 2012
Leasing of immovable property is not liable for VAt, Generally, it is applicable on leasing of motor vehicles, Software itc in most of the cases. All these are movable property.
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