Vat on rent
This query is : Resolved
Deepak Kumar Lakhi
(Querist)
03 June 2016
Dear sir/mam,
I am doing internal audit of a Ltd. co..
During vouching of jobwork expenses, i found an invoice in which company has taken a machinery on rent for which prior agreement is there.
In the bill vat is charged on the amount of rent.
I think vat should not be charged on rent as it is not a sale.
Please suggest me in above whether its correct or incorrect?
I am doing internal audit of a Ltd. co..
During vouching of jobwork expenses, i found an invoice in which company has taken a machinery on rent for which prior agreement is there.
In the bill vat is charged on the amount of rent.
I think vat should not be charged on rent as it is not a sale.
Please suggest me in above whether its correct or incorrect?
CA Rohit Jain
(Expert)
03 June 2016
Yes, VAT should not be charged on rent of properties.
Message likes :
1 times
Deepak Kumar Lakhi
(Querist)
03 June 2016
May it be covered in deemed sale?
Dhirajlal Rambhia
(Expert)
16 October 2021
No, its not deemed sale, service tax should have been charged.
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