Rentals on Movable Property Paid to Un-Registered Dealers

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..... Rentals on Movable Property Paid to Un-Registered Dealers
Query (Issue) Started By: - Gurmeet Singh Rohra Dated:- 11-1-2016 Last Reply Date:- 11-1-2016 VAT + CST
Got 4 Replies
VAT / Sales Tax
Hi Team, We are paying rentals to our vendors towards usage of movable property. These vendors are not registered with sales tax authority as their current turnover is less than 10 lakhs & they .....

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..... are claiming that they should be registered with sales tax department because of turnover limit. Query: 1. Whether their say of not getting themselves registered with Sales tax is correct. 2. If yes, please provide relevant notification / case law. So in that case whether we being registered dealers & dealing with un-registered dealers like above as we will be liable for MVAT at any penalised .....

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..... rate. We are sub-letting these movable assets & charging VAT on such transactions. Please advise. Regards, Reply By Ganeshan Kalyani: The Reply: Please analyse the nature of transaction involved in your case. to my understanding it seems that you are availing service of renting of immovable property. in this case service tax law will be applicable and not value added tax. Reply By MARIAPPAN GOV .....

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..... INDARAJAN: The Reply: Dear Ganeshan, In this case only movable properties are got rented and not immovable properties. Reply By Ganeshan Kalyani: The Reply: Thanks Mariappan Sir. Ihe renting of movable property is termed as deemed sale and liable to VAT. Further it is clear in law that prima facie the responsibility to collect tax and pay to the Government. therefore you need not have to worry. .....

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..... This is my view Reply By Ganeshan Kalyani: The Reply: Please read *lies with the supplier* with sentence '...pay to the Government'. Sorry inadvertent mistake on my part in typing.
Discussion Forum - Knowledge Sharing .....

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