Hire Charges
This query is : Resolved
ejaz naiyer
(Querist)
25 May 2010
Sir/Madam
If any company gives bykes on rent and give the term as Hire Charges whether it will still come under service tax? And whether MVAT will be applicable on it. Please give the answer in detail. So that I can understand the implication of the word HIRE on service tax & VAT.
If any company gives bykes on rent and give the term as Hire Charges whether it will still come under service tax? And whether MVAT will be applicable on it. Please give the answer in detail. So that I can understand the implication of the word HIRE on service tax & VAT.
Shyam Lal Naik
(Expert)
25 May 2010
Either Service Tax or MVAT will be applicable, not both.
The test is whether effective possession and control has been transfered ?. If Yes, Charge MVAT and if No, Charge Service Tax.
The test is whether effective possession and control has been transfered ?. If Yes, Charge MVAT and if No, Charge Service Tax.
25 May 2010
iT SHOULD COME UNDER Service tax as the activity done are in the nature of services.. You can not selling them so no VAT
Shyam Lal Naik
(Expert)
25 May 2010
In terms of Article 366 (29A) (d) of the constitution of India, transfer of right to use goods is treated as deemed sale and liable to Sales tax/VAT.
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