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Vat on rent

This query is : Resolved 

03 June 2016 Dear sir/mam,

I am doing internal audit of a Ltd. co..
During vouching of jobwork expenses, i found an invoice in which company has taken a machinery on rent for which prior agreement is there.
In the bill vat is charged on the amount of rent.
I think vat should not be charged on rent as it is not a sale.
Please suggest me in above whether its correct or incorrect?

03 June 2016 Yes, VAT should not be charged on rent of properties.

03 June 2016 May it be covered in deemed sale?


16 October 2021 No, its not deemed sale, service tax should have been charged.



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