VAT ON EMPTY CYLINDER (Government Ot Guiarat Finance Department Notificalion No. (GHN-18) VAT-2O05/ SCH-||(55X3)-TH :- Dated the 29th March,2oO6')

[Guest]

R/sir,

We are Engineering Manufacturing company in gujarat . We are purchase gas in cylinder . Purchaser give one big cylinder and he was charge rent on cylinder . When gas purchase he was transfer this gas on empty cylinder .

Now my question is that is that supplier charge Vat on Empty cylinder which was given a rent basis not a lease or sale bais .

He was argue that as per notification :

Government Ot Guiarat Finance Department Notificalion No. (GHN-18) VAT-2O05/
SCH-||(55X3)-TH :- Dated the 29th March,2oO6'

As per above notification u can pay VAT on cyinder which was given on rent basis .

Sir , Please guide is it any rules or law of gujarat vat , Vat charge on Rent ( Cylinder ) ? If yes pelase guide .

Advance thanks for this .

With Regards,

SNEHAL SHAH

 

[YAGAY andSUN]

Under right to use category, you may have to pay the Tax.

AI Summary

Right to use: VAT can apply where cylinders are supplied on rent as taxable use of goods. Transactions where a supplier fills gas into a purchaser's empty cylinder supplied on a rent basis may attract VAT because provision of the cylinder for use falls within the right to use category, treating the rental or hire of the cylinder as a taxable supply under the state VAT framework and relevant notification guidance.