Transfer of right to use?

696 views 2 replies

SANJAY

CHARTERED ACCOUNTANTS

943 Points Joined January 2011

Dear Members,

Please clarify that if a company registered under sales tax for selling of goods and company transfers rights to use its fixed assets to other company and it comes to under deemed sales so whether ther comapny should inform to the sales tax department of transferring such rights to use or it can pay the VAT on the basis of current sales tax registration??

Please reply soon!!!

Sanjay Verma

Replies (2)

chandra shaker

TAX PRACTITIONER

59 Points Joined December 2009

THE QUESTION IS HEADED UNDER LEASE CONTRACTS ,here any taxable/exempted goods when you are transferring to other person on rental basis for a stipulated period on the same you will collect rent against the said contract ,in this case you are liable to pay applicable rate of tax on the specific goods you supply on the total contract receipt received accordingly you are exempted from payment of lease rental tax on the specific goods which are categeorized under Exempted goods by the respective state act.

G.S.CHANDRA SHAKER

SALES TAX CONSULTANT