The rental company has applied a VAT of37,500 on the bill for rental of Mercedes for3,37,500 whereas the lease is a 3 year lease on the car, furthermore the lease is signed between USA Company and Tourism india company.
The payment for the lease is made monthly by foreign exchange remittance directly from USA Company to the lease company.
Please advise if VAT is chargeable or not. If not VAT any other kind of taxes are chargeable or not.
Thanx In advance
CAclubindia
