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Vat on machinery rented to other state from maharashtra

saroj badhai (asst manager) (33 Points)

02 January 2012

Hi,

Happy New Year.........2012

one machinery from Maharashtra sent to AP on Hire for a period of 5 month. pls update if Vat will be applicable, at what rate and whether C form can be issued by the party taking on rent.

also update the relevant clause/section of maharashtra VAT act.

thanks in advance.

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1 Replies

Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 02 January 2012

The machinery is given on hire for rent . So it is HIRE PURCHASE SALES . As per M VAT Act Hire purchase sales forms a part of the TURNNOVER of sales . Hence VAT will be applicable . C FORM cannot be issued as the ownership does not get transferred and also it is a capital good . C FORM cannot be issued by the buyer for purchase of capital good ....

In my above reply i have assumed that it is the business of the the person giving the machinery on HIRE BASIS ...