Tax on rent

My company is given machinery on rent basis to other company . Then it is matter of vat or service tax ?

Questions by Dipika Naik   answers by Dipika Naik

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Babu

  • Sep 22nd, 2011
 

service tax

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Vivek

  • Oct 11th, 2011
 

Both are applicable if you are working in state of Karnataka.Hiring the machinery to be given to other party first of all we add 4% vat after that we will charge service tax on it.If karnataka is not ur state then to take suggestion from ur consultant.

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i.ram harsha

  • Oct 15th, 2011
 

you have to pay income tax. if the renting of machinery is ur business then it is chargeable under PGBP(sec.28) of Indian income tax,1961.
And it is in nature of service ...and renting of movable goods covered under sec.65(105) of finance act 1994(service tax).....so u have to pay service tax also.
and the question of sales tax or VAT does not arise ...as there is no sale of goods.

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roger

  • Dec 29th, 2014
 

Do I have to pay from rental income in commercial area I get 1Lacs above

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