Vat applicable or Not

Dear Vijay

Plz tell for  which state are you talking about

bcoz the vat applicability is differennt in differennt state

hi

in Delhi VAT is applicable on hiring of Machinery

Karnataka State

Dear Vijaya

VAT is applicable on hiring of all goods (which includes machinery & equipments).  Though VAT is a State subject, the concept of `Sale` and `Transfer of Right to Use` for all the States are the same as the States are bound to levy tax only based on the powers conferred by Constitution of India.  So, I believe it is applicable for all the States.

Mr.Dharmaraju,

If possible can u send the Govt Circular ................

Please go through the definition of Sale in KVAT Act. The definition of sale includes `Transfer of Right to Use` which is nothing but hiring.  Since VAT is payable on sale of all goods, the tax needs to be paid even on hiring ....