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Query regarding vat

Tejas Jasoriya (CPT clear) (284 Points)

11 September 2015

In principle, VAT applies to all provisions of goods and services. Is the above statement correct?? How can VAT apply to service??Plse elaborate

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2 Replies

dhanamganesh@gmail.com (private service Accountant) (80 Points)
Replied 12 September 2015

madam/sirs,

vat applicable for leaseing of textile machinery to a subcontractor of textile products say conversion of yoarn single in todouble, and gassed yarn . in this case the leasor charges machinery rent is a kind of servics, for this servie tax is exemted but TNVAT provsion says this has to chargedwith 5% vat taxon every month lease rent . this way

2. if u buy some inputs and convert the same and issue vat invoice in case u sell and charge full tax on the final product then the vat is calculated on value of service also then also vat will applieed on the service portion in the bill.please.

with regards

p.r.ganesh

VAT aplies on Leasubg if textile machinery rent. please.