can we charge the vat on computer hiring charges? If we charge the vat on computer hiring charges,should vendor deduct the TDS?. and can i get vat credit which vat i charged on computer hiring charges?.
Plz clarify me.
8 Replies
madhur gupta
(student/article )
(1022 Points)
Replied 26 November 2009
i dont think so vat will be there on computer hiring charges as there is no sale ........
CA. MOHAMMAD.QUSROO
(CA FINAL)
(81 Points)
Replied 26 November 2009
NO, we cant charge VAT on computer hiring charges,
on hiring charges TDS can be deducted
Hemchand Kohli
(Accountant)
(889 Points)
Replied 26 November 2009
Yes, VAT will be charged if Computer is Given on Hire Basis as per RIGHT TO USE ACT @ 12.50%
Hemchand Kohli
(Accountant)
(889 Points)
Replied 26 November 2009
As per Right to USE ACT if any plant/Machinery, Furniture is given on hire basis, it means we are giving our right to another person to use our Plant/Machinery.
ranjit
(article assistant)
(39 Points)
Replied 26 November 2009
I think VAT will not be applicable for hiring of computer because there is no sale of goods, as per the definition of sale there should be transfer of any kind. Since there is no transfer hence VAT will not apply.
CA. SUDHARSAN K G
(Chartered Accountant)
(472 Points)
Replied 26 November 2009
Hello,
A) There is no Sale or Deemed Sale
B) You are just Providing the Service
Hence, there is no question of VAT applicability. Since the goods are in the possession of you, not with the client. In Simple, No Transfer of Goods.
But Service Tax will apply.
Hemchand Kohli
(Accountant)
(889 Points)
Replied 27 November 2009
If u want to know abt applicability of VAT read RIGHT TO USE ACT from www.dvatgovt.in.
Vijay (TDS outsourcing blore)
(Self)
(54 Points)
Replied 27 November 2009
My Computer rental vendor is charging service Tax, claiming, he is giving a rental service and I do TDS for the same...
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