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.
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 ...
CAclubindia
