CA Harish Singh (CA) (401 Points)
17 June 2011
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
praveen
(Chartered Accountant)
(6971 Points)
Replied 17 June 2011
where the car is rented out with the possession then VAT is applicable.
If the Car is rented out without prossession then service tax is applicable.
CA Harish Singh
(CA)
(401 Points)
Replied 17 June 2011
Please let me know that how can i know about possession in this lease agreement. if
the car is rented out with or without the possession then at what rate service /vat will be charged thereon.
CAclubindia
