B.R.SWAMY (ASST. MANAGER FINANCE) (27 Points)
20 June 2012Dear all,
we are giving our construction machinery & vehicles to xyz ltd on hire for their works in jammu& kashmir. we are collecting the hire charges from xyz ltd. whether these hire charges are liable for sales tax or not.if these chargesare liable for sales tax, what is the rate of tax?,
divva
(Industrial Trainee @ Ashok Leyland)
(348 Points)
Replied 20 June 2012
Its not a sale of goods, there is no transfer of ownership so sales tax is not applicable. Service tax wil be applicable but since service provided in J&K . ST is also not applicable
Anbuselvam
(CMA Final Pursuing)
(240 Points)
Replied 25 June 2012
Sales tax will be applicable only when the goods are marketable and movable.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 29 June 2012
From which state you are hiring the machinery to J&K? There is a provision in the name of "Right to use" under VAT Act. Hence kindly apply this point whether the machineries are covered in your state VAT act under the charging section of Right to use.
CAclubindia
