https://www.taxtmi.com/caselaws?id=418650 The note addresses taxation of lease transactions of railway wagons, focusing on whether the arrangement is a service or a deemed sale. It reasons that transfer of right of possession and effective control to the railways establishes that the lessors relinquished control, thereby constituting a deemed sale; consequence: the transaction falls within the VAT/sales tax regime and not service tax. Payment of VAT (albeit belatedly) and reliance on governmental clarification and the effective control test support treating the supply as sale, removing the taxable service characterization and favoring the lessor. en-us Fri, 18 Feb 2022 00:00:00 +0530 Tue, 13 Jan 2026 14:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418650 The note addresses taxation of lease transactions of railway wagons, focusing on whether the arrangement is a service or a deemed sale. It reasons that transfer of right of possession and effective control to the railways establishes that the lessors relinquished control, thereby constituting a deemed sale; consequence: the transaction falls within the VAT/sales tax regime and not service tax. Payment of VAT (albeit belatedly) and reliance on governmental clarification and the effective control test support treating the supply as sale, removing the taxable service characterization and favoring the lessor. Case-Laws Service Tax Fri, 18 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418650