Tds would be vat element or not

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jahangir

jahangir (Querist)
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09 April 2012 if we paid lease rent including vat than tds will be deducting including vat or excluding vat?

CA Rakesh Goenka

CA Rakesh Goenka (Expert)
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09 April 2012 ok then TDS should be deducted at total Bill value mean Including VAT

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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09 April 2012 TDS will be deducted inclusive of VAT but if service tax is charged then it be excluded.

Mihir Doshi

Mihir Doshi (Expert)
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09 April 2012 Y vat is charged on Rent amount????? Can any one clarify????

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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09 April 2012 Dear MIhir,

VAT is charged on the amount received for providing right to use the property. Lease agreement gives right to use the property and hence, liable for VAT.

Mihir Doshi

Mihir Doshi (Expert)
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09 April 2012 Dear Amit,

Thanks but We are using property on lease but landlord never charged us VAT on the Rental amount!!! So, i am confused, how VAT is liable to charge over such amount?? I am talking about Gujarat VAT

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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09 April 2012 Leasing of immovable property is not liable for VAt,
Generally, it is applicable on leasing of motor vehicles, Software itc in most of the cases.
All these are movable property.

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Mihir Doshi

Mihir Doshi (Expert)
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09 April 2012 Ok, now i got the point

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