Kvat on server space

Sir/madam,

Is Karnataka VAT applicable on renting/sale of space in vertual server (Cloud technology)? if so at what rate?

Replies (3)
Dear Sir Renting of Property will comes under service tax sale of space will not come under Kvat act so it will comes under services

  Mr Akshay Hegde,

  Tere is aclear difference between renting/hiring and leasing. It depends on the terms of cotract. If the server space is left to the user/customer to use as he likes ,under his control and operation,then it becomes leasing and taxable under KVAT Act. If such server facility is being operated/controlled  by owner of the server then it is simply renting/hiring and does not attract VAT laws.......MJK

Thank you Mr Purna and MJK

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