Thanks for your valued reply. In fact your reply in two part one relates to State Law under VAT Tax or Central Act -CST applicable in cases suitably .Second part relates to Service tax. We would like you to kindly clarify further:
UNDER VAT/CST ACT:
Where movable machinery is hired out and the control and possession is given to the cusotmer the transaction would be liable under the VAT/CST law.
What would be tax liability under VAT/CST Acts in case machine is given on rent and possession is not given to the customer. It is operated by Owner employees but at the running cost of customer. Machine goes and works in customers premises but control and possesion remains with the machine owner.
What would be position under right to use act or work contract under VAT/CST UNDER SERVICE TAX ACT :
The entry which needs to be examined is supply of tangible goods under service tax.
Where the possession/ control is not given to the cusotmer then the same is liable
under supply of tangible goods wef 16.5.2008 : It came in force from 16.05.08. Prior to it for 2006-07, 2007-08 and upto 15.05.08 was rental income from moveable machinery irrespective of any limit or condition was beyond /exempt the net of service tax under any section/head whether possession and control given or not
Under supply of tangible goods brought into net of ST w.e.f. 16.05.08 what would be tax liabilityunder possession and control given/possession and control not given situation.
Which one step and mode would be beneficial for machine owner ?
Lastly Is is sure that there was no taxibility under service tax act for any limit for receipts of rental from moiveable property prior to 16.05.08 and rental income from immovable income has noting to do with it.