Vat Applicability - equipments on rent

[madhavvan n]

where equipments / plant and machinery is given on rent undre mvat law vat is required to be charged ( sinc the lease act has been merged with vat act) as per service tax act any tangible property given on lease is liable for service tax is in these kind of transactions both vat and service tax will be applicable kindly clarify whether this is correct

AI Summary

Clarification on VAT and Service Tax: Equipment Rental Under MVAT Law and Conditions for VAT Applicability A query was raised regarding the applicability of VAT and service tax on renting equipment under the MVAT law, noting that the lease act has merged with the VAT act. The response clarified that the supply of tangible goods for use, subject to VAT as a deemed sale, is not covered under the proposed service tax. Determining whether VAT applies depends on whether possession and control are transferred, which is based on the contract terms and material facts.