Vinod Nayak (Regional Manager - Finance) (69 Points)
19 November 2009My company is using computers on rentals for office work. The Vendor is charging VAT on the Rentals. I would like to know whether VAT is applicable or Service Tax.
Please clarify.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 November 2009
Since the control and possession is with the company the owner would have to charge VAT @ applicable for computers ( IN Karnataka it is 4%) as the right to use goods is provided.
Vinod Nayak
(Regional Manager - Finance)
(69 Points)
Replied 20 November 2009
Thanks for the reply.
Is it the same for all hired assets like Furnitures etc. Please quote the section under which it is so.
Thanks in advance.
Vinod Nayak
(Regional Manager - Finance)
(69 Points)
Replied 21 November 2009
As per sec. 65(105)(zzzzj) of Fin. Act, 1994 ST is applicable under supply of tangible goods service. Please clarify
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