Sir/madam,
Is Karnataka VAT applicable on renting/sale of space in vertual server (Cloud technology)? if so at what rate?
Akshay Hegde (CA) (51 Points)
07 November 2012Sir/madam,
Is Karnataka VAT applicable on renting/sale of space in vertual server (Cloud technology)? if so at what rate?
PURNA
(ASST MANAGER)
(43 Points)
Replied 08 November 2012
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 08 November 2012
Mr Akshay Hegde,
Tere is aclear difference between renting/hiring and leasing. It depends on the terms of cotract. If the server space is left to the user/customer to use as he likes ,under his control and operation,then it becomes leasing and taxable under KVAT Act. If such server facility is being operated/controlled by owner of the server then it is simply renting/hiring and does not attract VAT laws.......MJK
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