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Renting of cranes

This query is : Resolved 
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(Querist)
18 December 2012 Sir
One my clients who owns three cranes ,out of which two are given on monthly rent .Whether the receipts of machinery rent is liable for service tax.
RGDS
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Kaushik Vinod

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Kaushik Vinod (Expert)
20 December 2012 Hi Jaykumar,

From 01-07-2012 "hiring of goods without transfer of right to use goods" is a declared service under 66E(f), hence if the Cranes has been transferred without transferring the right to use goods then it is sale of service and service tax is payable.

Legal Reference: Bharat Sanchar Nigam Limited v/s union of India (2006)3 STT 245, Gauhati High Court in case of HLS Asia, Article 366(29A) of Constitution.

Crux:If the Cranrs has been given on rent with drivers then service tax applicable , if cranes given on rent with some conditions on its use the again service tax applicable.

Thanks
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