vat on rent of machinery

This query is : Resolved

Report Abuse Follow Query Ask a Query

vandana

vandana (Querist)
Follow

11 December 2008 pls. tell whether there is any Vat on rent of Machinery. IF Yes what is the %.

CA. Raviprakash M.S

CA. Raviprakash M.S (Expert)
Follow

11 December 2008 The position under karnataka VAT is below.

The definition of the term Dealer Sec. 2(12) includes a person engaged in the business of transfer of the right to use any goods for any purpose.

Hence hiring of machinery attracts VAT.

You have to checkt your states Act and the definition of the term dealer for your query.4

G Muralidharan

G Muralidharan (Expert)
Follow

11 December 2008 Machinery rental charges come under Right to use, which are taxable under TN VAT u/s4.

Upgrade to CAclubindia Pro. Subscribe Now!