VAT ON LEASE TRANSACTION UNDER MVAT

ONE OF MY CLIENT IS RUNNING BUSINESS OF XEROX MACHINE, HE GIVES XEROX MACHINES ON RENT, PREPARING TAX INVOICE AS PRINTING CHARGES AND CHARGING 4% VAT.

Replies (3)

Dear Rajni,

                     Whether VAT will be applicable in your case or not depend upon the Agreement with Party. Please Write me in Full Detail and send copy of Contract sothat I can help to you. my email id is Sachinagarwalcallb @ gmail.com

 Hi....

 

Well to best of my knowledge VAT is applicable if the Machine is given on Rent... WE deal in  Vending Machine and Similar issue arose... I took Openion of CB thakor... and as per him 4% VAT is applicalbe on the Rent charged. Since it falls under Lease Transaction.

SUbject to the Invoice is made as Rent for Machine.

Can any one tell me that Contener given on rent shall be charged for VAT or Service tax

or both

if both the tax will apply, how how will the liability will be calculated under the different laws

becaues

vat apply by reson of defination of sale, which includes transfer of movable property for use (Lease)

And service tax will apply because of section ZZZZj applies which tax the renting of  any tengiable goods,machinery, equipments for use

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