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vishal (Querist)

08 July 2015 we have given the machinery on rent to use but we are in doubt whether it would we cover under the service tax or vat???

Sagar mal Pareek

Sagar mal Pareek (Expert)

10 July 2015 iT IS A GOOD QUESTION.The service titled "supply of tangible goods for use" as defined in the pre 01/07/2012,era defined this term under section 65(105)(zzzzj)as, to any person by any other person in relationto supply of tangible goods including machinery...... for use WITHOUT TRANSFERRING RIGHT OF POSSESION AND EFFECTIVE CONTROL of such machinery.....
When this service was brought in statute book it was explained that if such machine etc was supplied for use with possession and control it is covered by STATE VAT .Now you have to understand the term as asked by you as to on what terms you have supplied such machine to the other party.ca. sagar mal pareek,9824346469,smpfca@gmail.com
Bharuch

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