Our Company has given below said IT Equipments on Rentals whereas the Ownership and Possession is with the company only right to use the equipment is transfered (without operator) to the Customer:
1.Computer (servers) with Operating system and softwares 2.Printer 3.Powersupply ( UPS) 4.Display device, keyboard, mouse 5.Client Machines with operating system and proprietary software
Can you please help me with the below queries:
1.MVAT Rate on such rental incomes. 2.Why MVAT Rate should not be 12.50% 3.Schedule under which the above will be covered.
02 December 2012
As constructive possession has been established in this case, the liability under VAT arises at taxable at the rate specified under residuary schedule i.e., 12.5%
Thanks a lot for your valuable but after referring to the Schedule C of MVAT, I guess above said will be covered under VAT@5% category. Also refered to the Notification No. 1505/CR-116/Taxation 1 & under that all above equipments are covered under CENTRAL EXCISE TARIFF HEADING 84.71.
Thanks a lot for your valuable but after referring to the Schedule C of MVAT, I guess above said will be covered under VAT@5% category. Also refered to the Notification No. 1505/CR-116/Taxation 1 & under that all above equipments are covered under CENTRAL EXCISE TARIFF HEADING 84.71.
CAclubindia
