Renting of equipments/Tyres

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Quick Summary

A business trading in lorry and truck tyres is considering a new venture: renting out tyres and equipment to small transporters on a contract basis. They are seeking guidance on GST applicability, rates, the necessity of legal registration for agreements, and how input tax credits can be claimed on services and retreading charges. They also inquired about claiming depreciation and TDS rates for partnership firms.

sankar ponnan

sankar ponnan (Querist)
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25 December 2020 SIR
We are trading tyres and spares items for Lorries/Trucks. Now, we have decided to start a new business for service motive that RENTING the tyres and other equipments to the small transporters under the contract / lease basis for a particular period. They will pay the rent against our service bills.
Doubtful Questions are,
1. Is it possible under GST Act?
2. Rate of GST applicable for this service?
3. Agreement should legally be registered or not?
4. If we pay GST by collecting it from the transporters against the service, Can it be adjusted by the inputs we have?
5. Can we take the inputs on the Retreading charges of tyres after the lease period?
6. Can we claim the depreciation if any?

Plz guide us. Thanks in adv

Lekhraj sood

Lekhraj sood (Expert)
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25 December 2020 1.Yes
2.Same as applicable for sale of tyres
3.There is no need commercially but preferable.
4. yes
5.Yes, those which are not for stock in trade.

sankar ponnan

sankar ponnan (Querist)
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25 December 2020 Ok Sir
What is the percentage of tds to be deducted by transporters towards the payment if we are the partnership firm?
guide me sir
thanks in adv

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