CA Jayesh Gokalgandhi (CA in Industry) (126 Points)
23 September 2010We are taking furniture and other props on hire from a vendor who is charging VAT @ 12.5% on his hire charges. He has mentioned that this is as per Schedule E of MVAT Act, 2002.
Is this correct?
Pls. help!
Mandar Deshmukh
(Article Assistant)
(78 Points)
Replied 30 September 2010
If it is a Hire Purchase, then it is Correct,
As per MVAT, the definition of Sales includes deemed sales like Lease, Hire Purchase, etc
& it it is not, then the vendor cant charge VAT on it.
All the goods/commodities which didnt fall under Schedule A to D are covered under schedule E charging the rate of 12.5%
CAclubindia
