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Tax applicability for lease of machinery

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(Querist)
24 July 2013 we are the manufacturers of packaging machinery one of customer want our machine on lease with manpower for one year. for this transaction weather vat applicable or service tax. pls guide.
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Vasanth Kumar J K

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Vasanth Kumar J K (Expert)
24 July 2013 giving machinery on lease / rental basis fall under sale definition (deemed sale) right to use attracts tax (vat)
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