Important Task

[Nikhil Kumar]

Dear Members,

                             I have a question to all of u, that i am working with biomedical company,and it is providing rental services to hospitality equipments and genrate the bill with vat /cst in delhi , it is right or wrong tell me ,

if wrong so how much I portionate vqat & service tax In a same bill .

[YAGAY and SUN]

It will depend on the aspect of effective control.  If effective control and possession of the rented equipment lies with you then service tax will be applicable otherwise this transaction will fall under the category of Right to Use, on which VAT/CST will be applicable.

AI Summary

Effective control determines whether equipment rental attracts service tax or is treated as right-to-use under VAT/CST.
Where the supplier retains effective control and possession is not transferred, the supply is a taxable service attracting service tax; where the customer obtains possession and a right to use the goods without supplier control, the transaction is treated as a sale of right-to-use and falls under VAT/CST.