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whether CONSTRUCTION EQUIPMENT on lease at site is liable to SERVICE TAX or VAT

Service Tax - Started By: - SADIA ANSARI - Dated:- 18-1-2016 Last Replied Date:- 24-1-2016 - I want to know whether CONSTRUCTION EQUIPMMENT taken on lease at site is whether liable to Service Tax or VAT.What conditions should be fullfilled ?please give ruling and case study reference(s). - Reply By KASTURI SETHI - The Reply = Construction equipment taken on lease is a service and it is covered under the category of Right To Use Of Tangible Goods Services under erstwhile Section 65 (105) (zzzz) b .....

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service) Case law 2010(20)STR.417(SC) = 2010 (10) TMI 4 - SUPREME COURT OF INDIA in the case of Association of Leasing & Financial Services Co. Vs.UOI (Para No. 40 of the decision) is worth reading. - Reply By Ganeshan Kalyani - The Reply = With due respect I would submit that though the ownership remains with the owner the right to use the equipment is with the lesse and it would tantamount to deemed sale and VAT would be applicable. However if service tax is applicable then VAT will not a .....

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udgement of S.C. but that was old so I did not mention. Definition of 'Right to use of tangible goods' has not been changed because old accounting codes are in force though for statistical purpose. Ultimately Equipment/goods are to be returned to the owner. In sale the goods are sold for ever and ownership is changed for ever. In the eyes of State law, what is the definition of 'deemed sale' I do not know. - Reply By YAGAY AND SUN - The Reply = The principle of effective possessi .....

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l will remain with the lessor. Pl. throw more light on the issue especially keeping in view the legal definition of 'LEASE' and the judgement of the Apex Court. Your esteemed views will be an education for me. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, What is deemed sale in terms State law/VAT law ? It is required to quench my thrust of knowledge. Thanks. - Reply By Akash Deep - The Reply = Dear allit i good you see a lively discussion.my view is that ownership of go .....

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e basis of agreement is is proved that effective control and possession of the goods not ownership is transferred, it will be a case of deemed sale and not service. when effective control and possession of goods has been transfered, will depend on particular nature of transaction. - Reply By YAGAY AND SUN - The Reply = Well explained by Mr. Akash Deep. - Reply By Akash Deep - The Reply = Thaks sir yagav and sun - Reply By KASTURI SETHI - The Reply = Sh.Akash Deep ji, Thanks a lot for clarifying .....

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