Liable for service tax

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Mallika Shah (Querist)
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31 December 2012 is JCB given on rent liable to service tax?
If yes, whether expenes like driver's salary, diesel oil, allowable as input credit?
and whether gross turnover of JCB receipts will be considered for service tax registration

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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31 December 2012 The pure renting by giving possession and control of the JCB to the customer would be leviable to VAT.
However when the control and posession is with the owner, then he would be liable for ST only on the gross amount.
As per the present definition of capital goods it appears that the credit on the same is available as it would be undermaterial handling equipment. The same maybe confirmed by dislcosing to the dept. if credit proposed tobe availed on the JCB.
NO ST on salary/ input on deisel is available.

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Tareq Imam

Tareq Imam (Expert)
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10 February 2013 you can claim input credit on the excise duty paid on purchase of machinery,,,,, but to claim this you should not have claimed depreciation on the excise amount in income tax. that is dont add exicise value while taking Machi ne value for depreciation purpose.

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