16 November 2009
ON OF THE MY CLIENT IS REGISTERED UNDER MVAT ACT, 2002. HIS MAIN BUSINESS IS OF MARBLE & GRANITE AND ALSO HE IS EARNING TRUCK RENT FROM ONE PARTY RS.50,000/- p.m. AS PER AGREEMENT MADE. CAN HE LIABLE TO PAY VAT ON TRUCK RENT ?
16 November 2009
If he is doing the business of running the truck on hire then his taxation is different as that becomes a transportation business and he would be liable to taxes levied on transportation trade. However in case he gives any asset on lease, the VAT is applicable. Previously it was leasing tax. In Maharashtra, transporter is not a dealer for VAT, but those who rent or lease the vehicle are dealers for MVAT.
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