Plant & machinery given on lease-tax implication under pvat
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 July 2011
Dear Sir,
I am planning to give Plant& Machinery on lease basis. I want to know is vat is applicable on which rate. Service tax is applicable on P&M given on lease.
What is due date for return filling and payment. methodology for tax charged and payment under punjab vat act.
How should i comply pvat legal frame work
I am planning to give Plant& Machinery on lease basis. I want to know is vat is applicable on which rate. Service tax is applicable on P&M given on lease.
What is due date for return filling and payment. methodology for tax charged and payment under punjab vat act.
How should i comply pvat legal frame work
15 July 2011
Mr Author,
Leasing is another kind of sale only.Here you receive the cost(consideraation) in instalments.It may be for a long or short period.In the case of lease you have to entrust the machinery entirely to the lessees,i.e.they should do the operation,maintenance and fuelling by themselves.If you do these activities yourself,then it becomes hiring,in which case there will be no tax.Suppose you send an earth mover to a contractor for long use with your driver,deisel and lubricants,then it will be hiring.Lease rentals received will be declared each month in the returns and vat to be paid at the applicable rates.
MJK
Leasing is another kind of sale only.Here you receive the cost(consideraation) in instalments.It may be for a long or short period.In the case of lease you have to entrust the machinery entirely to the lessees,i.e.they should do the operation,maintenance and fuelling by themselves.If you do these activities yourself,then it becomes hiring,in which case there will be no tax.Suppose you send an earth mover to a contractor for long use with your driver,deisel and lubricants,then it will be hiring.Lease rentals received will be declared each month in the returns and vat to be paid at the applicable rates.
MJK
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