Tn vat


We used to Import goods into chennai and use that in our machinery in Delhi and rent the Machinery. In turn we collect the Service Tax and pay on the value of rent received. Mean while the sales tax comissioner based on the purchase records from the Import Export code issued a notice stating that we have to pay the VAT on the import purchases, but we have used the import purchases for our own consumption and we had not resold the same. Please advice..

 

Regards,

Kumar

 
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Advocate

If machinery is operated in Delhi by the lessee and have the full control on the machinery then you have to pay CST not service tax.

 
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