https://www.taxtmi.com/caselaws?id=249623 Under a BOOT arrangement, VAT/TDS could not be levied on amounts payable where the supplier retained control and possession of the equipment during the contract term, remained responsible for operation, maintenance and upgradation, and transferred the system only at the end for nominal consideration. On those facts, there was no present transfer of title or transfer of the right to use goods, so the transaction was characterised as a service arrangement rather than a sale of goods or works contract. The sale element required for VAT was absent, and the deduction of tax at source from the CAPEX portion of the quarterly charges was held unlawful. en-us Wed, 19 Feb 2014 00:00:00 +0530 Fri, 18 Jul 2014 12:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249623 Under a BOOT arrangement, VAT/TDS could not be levied on amounts payable where the supplier retained control and possession of the equipment during the contract term, remained responsible for operation, maintenance and upgradation, and transferred the system only at the end for nominal consideration. On those facts, there was no present transfer of title or transfer of the right to use goods, so the transaction was characterised as a service arrangement rather than a sale of goods or works contract. The sale element required for VAT was absent, and the deduction of tax at source from the CAPEX portion of the quarterly charges was held unlawful. Case-Laws VAT and Sales Tax Wed, 19 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249623