Sale tax or service tax?? which applicable?

SANJAY (CHARTERED ACCOUNTANTS) (938 Points)

27 August 2011  

Hello Dear Members...

Please sort out a problem stating as under:-

A Comapny is going to transfer the rights to use Tangible Goods (Here Tangible Goods are mainly Cars) by an agreement for a period of time on receiving lumpsum amount. My question is that whether there is Service Tax applicable or VAT applicable? Remember here ownership is not transfered only right to use goods is transferred.

Please Reply Soon!!! Its Most urgent!!!

Thanks in Advance

Sanjay Verma