CST or Service TAx

This query is : Resolved

Manjula (Querist)
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09 December 2009 Hi,
I want to know , in case of Inter-state supply of services, which is applicable - CST or Service tax?
If a person engaged in business of providing machineries on hire-basis to customers in other State, should he charge CST of Service tax in his Invoice ?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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09 December 2009 Sales Tax and Service Tax are mutually exclusive.

If the possession and effective control is transfered, CST is chargeable, else Service Tax.

Manjula

Manjula (Querist)
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09 December 2009 thank you very much Shyam. The machinery is rented out to the customer. So, no possession & control is transfered. It is used by the customer in is construction work. Is CST applicable in this case?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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09 December 2009 No, in this case service tax appliable

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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09 December 2009 Service tax is applicable

Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 December 2009 The machine are rented is not sufficient to prove that effective control and possession is not transfered. The arrangement needs to be gone into detail.

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