mukundasy (manager) (97 Points)
14 May 2009Dear All,
Our company is planning to hire it's furnitures, computers, Air Conditioners and other equipments to the other parties. Please let me know as to whether VAT is applicable on hiring of equipments and what are the prevailing rates.
My second question is that whether the concerned party has to deduct TDS while making the payments for the hiring of equipments. If yes what is the rate of TDS.
With Regards,
Mukunda
Sachin
(Chartered Accountant)
(419 Points)
Replied 17 May 2009
Dear Mukund,
VAT will not be applicable on this situation and you will be liable to deduct TDS. write me email if you want to more clarification. my email id is sachinagarwalcallb @ gmail.com
Sachin
(Chartered Accountant)
(419 Points)
Replied 17 May 2009
Dear Mukund,
VAT will not be applicable on this situation and you will be liable to deduct TDS. write me email if you want to more clarification. my email id is sachinagarwalcallb @ gmail.com
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 May 2009
Dear Sir,
VAT would certainly be applicable as the right to use the movable property is a deemed sale under VAT law. Please confirm with the definition under the VAT law applicable to you and then go ahead. The liability would be at the same rate as the movable property.
Income tax I do not know.
Anoop
(Service)
(345 Points)
Replied 19 May 2009
In my opinion, Mr. Madhukar is right because the control of goods in totally in your hand so vat would be applicable.
mukundasy
(manager)
(97 Points)
Replied 26 May 2009
I understand that the hiring out of furniture, computers and other movable property attracts VAT. If the movable properties are hired out to State/Central Government department, whether VAT has to be charged to them? Whether there is any circular/notification exempting the levy of VAT if the movable properties are rented to government departments?
With Regards,
Mukunda
R B Banwat
(tax consultant)
(154 Points)
Replied 26 May 2009
1. Hiring of Furniture, computers ect movable properities were previously governed by Right to Use Act and liable to tax at respective rates as per Schedule
2. After VAT regime started - Right to use is merged with VAT Act and defination of sales is amendeded accordingly. Rate of tax is the rate on that product which is given on hire. e.g. Computer is taxable under VAT at 4%, therefore it will attrcat same rae of 4% om hitre charges. Furniture 12.5% then on its hire charges same rate will be applicable.
3. No specific rate as such only on hire charges . its related to the product given on hire
thats all for the pen at present
mukundasy
(manager)
(97 Points)
Replied 27 May 2009
Dear All,
I would like to be more specific about our transactions. We had purchased the Air conditioners, furnitures and Fixtures, office equipments, computers etc., from other dealers and we have used it for the last few years. We are now planning to hire out the same to a department from Central Government. Should I charge VAT for the transactions or there are any exemptions if we hire it out to Government departments
With Regards,
Mukunda
suresh narne
(Manager finance)
(21 Points)
Replied 22 February 2016
in this situation, your company needs to charge VAT at applicable rates and produce the invoice to your client. your client will deduct TDS @ 2% and remit the balance to your company's account.
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