Vessel of one company is given on hire(under bareboat charter party agreement) to other sister concern (both situated in Mumbai), vessel is currently in use in Gujarat port(charterer has the authority to control the movement of vessel).
whether this agreement will attract VAT or CST??? OR any scenario is applicable for such transaction.
Please help its urgent.
acc to me since it is not a sale vta/cst shouldnt be attracted ,its a service under "supply of tangible goods for use"
dear nitin,
However as per circular of service tax, it is applicable only when the authority of movement of asset is with the owner.
In this case the authority of movement of asset lies with the chartere and not the owner.
So service tax wont be applicable.
Varma Raja & Associates
Thrissur
CA Inter
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Thane
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