Transfer of right to use (service tax or sales tax)


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Querist : Anonymous

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Querist : Anonymous (Querist)
21 July 2015 Dear all expert. I have given my 5 Machine. Which i have given in factory on rent basis against which i receive rent every month, before that i had made a agreement "TRANSFER OF RIGHT TO USE THE GOODS" on groud of u/s 366 of Constitution of india
Now Service tax department had given me notice and after hearing my plea they have show cause of Rs.20 Lakh service tax demand. My plea was that the machine have been given by on term of agreement. They are not accepting my plea and constitutional rights u/s 366 have been set aside.
Please clear my doubt.
Thank u all

21 July 2015 If the control and management of the machines still rest with you, service tax attracts, other wise it is a deemed sales liable to be taxed under VAT.

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 July 2015 Dear Warrier sir, The title has not been transferred but the effective control and management have been transferred to the factory owner against which i receive a consideration amount as a rent.
The mode of payment received by me is vide Cheque after deduction of TDS u/s 194C.
As per section 366 Clause 29A of The Constitution of India the above mentioned case is totally attract the VAT Act neither the Service Tax.
Please intimate me how to prepare a agreement under which the rights have been transferred. (Any format of the agreement)
Hope you reply serve my purpose for which is will be highly thankful to you.
Thanking You.

The agreement under "TRANSFER OF RIGHT TO USE GOODS"

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 July 2015 Please reply experts.

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Querist : Anonymous

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Querist : Anonymous (Querist)
29 July 2015 Dear Warrier Sir,
Please reply that i have prepare a agreement between me and factory and transferred the rights, possession and effective control of machine then under such circumstances is i am liable to pay service tax or vat.
please reply sir


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