Plz clarify me.....,

TDS / TCS 937 views 8 replies

can we charge the vat on computer hiring charges? If we charge the  vat on computer hiring charges,should vendor deduct the TDS?. and can i get vat credit which vat i charged on computer hiring charges?.

Plz clarify me.

Replies (8)

i dont think so vat will be there on computer hiring charges as there is no sale ........

NO, we cant charge VAT on computer hiring charges,

on hiring charges TDS can be deducted

Yes, VAT will be charged if Computer is Given on Hire Basis as per RIGHT TO USE ACT @ 12.50%

As per Right to USE ACT if any plant/Machinery, Furniture is given on hire basis, it means we are giving our right to another person to use our Plant/Machinery.

I think VAT will not be applicable for hiring of computer because there is no sale of goods, as per the definition of sale there should be transfer of any kind.  Since there is no transfer hence VAT will not apply.

Hello,

A) There is no Sale or Deemed Sale

B) You are just Providing the Service

Hence, there is no question of VAT applicability. Since the goods are in the possession of you, not with the client. In Simple, No Transfer of Goods.

But Service Tax will apply.

If u want to know abt applicability of  VAT read RIGHT TO USE ACT from www.dvatgovt.in.

My Computer rental vendor is charging service Tax, claiming, he is giving a rental service and I do TDS for the same...


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