Vat implications on machine rent under karanataka vat act

This query is : Resolved

Indudhar (Querist)
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16 March 2013 Hello friends,

one of my friend is giving hitachi and tippers on rental/hire basis . what is the vat tax implications under vat act. He is registered under VAT Act.
if vatable then what are the allowable deductions.

please illustrate me..

CA. Hari Kishan

CA. Hari Kishan (Expert)
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16 March 2013 Transfer of rights to use goods is sale as defined under the Karnataka VAT law. Hence the transaction is no doubt VATABLE.. as to allowable deduction , please refer rule 3(2).