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Renting of tents, cutlery & furniture on marriages is deemed sales U/S 2(35)(iv)
Renting of tents, cutlery & furniture on marriages is deemed sales U/S 2(35)(iv)
Assessee was engaged in business of tent decorations. Assessee moved an application under section 36 before the Additional Commissioner for determining; whether activity of providing service relating to tent, shamiyanas, pandal including other accessories on occasion of marriages was liable to tax under the provisions of Rajasthan VAT Act. HC concluded that items mentioned above would be covered by the definition of sale in section 2(35)(iv).-007554
1. Assessee was engaged in business of tent decorations.
2. Assessee moved an application under section 36 before the Additional Commissioner for determining disputed questions: (i) Whether an erection of pandal or shamiyana or tent including other accessories like carpet, sofa, chair, table, crockery, etc. could be treated as sale as defined in section 2(35)(iv), (ii) whether the activity of providing service relating to tent, shamiyanas, pandal including other accessories was liable to tax under the provisions of Rajasthan VAT Act, (iii) if the answer of question No. (ii) was in positive then what rate would be applicable under the VAT Act, and (iv) whether the activity of providing service of tent, pandal, shamiyanas as mentioned hereinabove was beyond the purview of the VAT Act and no tax was leviable on it.
3. HELD- High Court concluded that renting out of tents, cutlery, furnitures and carpets by the assessee, a tent house, would be covered by the definition of sale in section 2(35)(iv).
Case Reference- Additional Commissioner (Legal), Commercial Taxes, Rajasthan, Jaipur v. Taluka Tent Decorators
HIGH COURT OF RAJASTHAN
[2015] 58 taxmann.com 248 (Rajasthan)
