30 December 2014
A pvt ltd co engaged in busness of mobile tower construction. all material purchase by co itself. after completion of tower co rent/ lease out these tower to mobile operator like idea airte etc. & take lease or rent fron them. electricity exps ,land rent also reimbursed by network operator. co charged service tax on all above billing. Mvat is applicable on lease out tower? All tower setup cost shown as capital assets in co books.
31 December 2014
MVAT will not be applicable as there is a no transfer of right to use the goods by the private limited company to the mobile operators. Such transfer is not taxable under MVAT Act, 2002 since the effective control & possession of the property is with the owner i.e. private limited co. and the company is not transferring the right to use the tower. Further, the goods also excludes immovable property from its definition.
10 January 2015
Thanks sir.But there is small doubt. What is mean by transfer of right to use. Operator using tower for providing service to his client for period 5-10 year . Whether it is not transfer of right? Please guide.
CAclubindia
