the transfer of the right to use any goods for any purpose,

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This query is : Resolved

Vishal Upadhyay (Querist)

05 May 2011 Dear All

We have laid gas pipe line for manufacturing of ceramic sanitary ware in the year 2009-10. Now we want to use same gas pipe line for transportation of gas to other company.

My query is whether we have to charge VAT on total transaction value?
If yeas at what %?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

05 May 2011 1) Generally right to use goods is considered as 'deemed sale' on which VAT is levied. You may pl refer the respective state VAT law for the taxing provision and rate.
2) Again,the said arrangement may attract service tax provisions also. Pl check it under the head 'supply of tangible goods'.

Vishal Upadhyay

Vishal Upadhyay (Querist)

05 May 2011 Can we take ground that laid pipe is immovable property and not cover under goods defination of Gujarat VAT Act?

We have taken registration for ST.

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