PRASANTH (BUDGET ACCOUNTANT) (37 Points)
20 August 2014Is Service tax leviable on trailer hire charges ?? If yes under which head should the registration be obtained ? My client does not directly involve in transportaton of goods. No consignment note is issued by my client. Please let me know whether service tax will be attracted upon hiring the trailer.
JSS
(Practice)
(58 Points)
Replied 21 September 2014
Dear Mr. Prashanth,
Given that the party is not directly involved in transportation of goods and that it does not issue a consignment note, the service appears to be taxable under the head "Supply of Tangible goods" Service, since the trailer is given on hire with no specific purpose (please revert if this is not the case).
Hence, considering the above, Service Tax @ 12.36% needs to be charged for giving trailer for hire as above, in the invoice issued for the same.
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