MVAT - TAX ON RIGHT TO USE GOODS (LEASING AND HIRE CHARGES)

Earlier the tax on leasing was payable under the provisions of Maharashtra Tax on Right to Use Goods Act. But now, as there is no separate Act, all such transactions of deemed sale shall be liable to tax under MVAT Act at the same rate of tax as prescribed in the aforesaid schedules.

Section 42(4) of MVAT Act provides for a composition scheme for those dealers who undertake transfer of the right to use mandap, tarpaulin, pandal, shamiana or the decoration of such mandap, pandal or shamiana and the transfer of the right to use furniture, fixtures, lights and light fittings, floor coverings, utensils and other articles ordinarily used along with a mandap, pandal or shamiana (whether or not for a specified period). The rate of composition in such cases is fixed @ 1.5%.