Generator given to bank

This query is : Resolved

Shakthi (Querist)
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11 November 2011 Sir

MY QUERY IS THAT MY FRIEND HAS GIVEN 4 GENERATORS ON RENT TO A NATIO0NALISED BANK AND IS RECEIVING AROUND RS 60,000 AS RENT AND RS 40,000 AS RUNNING CHARGES PER MONTH. WILL SERVICE TAX BE APPLICABLE. TDS IS HOWEVER BEING DEDUCTED BY THE BANK.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 November 2011 Since running charges is levied from bank, it can be presumed that control over the assets still rest with the lessor. If viewed so, the activity comes under'supply of tangible goods service' on which service tax attracts.

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