Renting of hydra and trailer

This query is : Resolved

s.karthikeyan (Querist)
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27 June 2013 Dear sir,

we are the manuf.company.
we receiving service from vendor for HYDRA and Trailer as a Service receiver under REVERSE CHARGE do we need to pay Service tax for this service?

Pls explain Declared service meaning?
Supply of tangible goods service is now exist?

thanks
karthik

CA. C V SURYAM

CA. C V SURYAM (Expert)
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27 June 2013 As per the Sec.65B clause 54, if your SPs service falls under WC, then in case if SP is a non-corporate and you are a corporate, provisions of RCM will apply on 50-50 sharing of tax.

s.karthikeyan

s.karthikeyan (Querist)
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27 June 2013 sir,

He is renting only HYDRA NOT supplying any other materials, he is a non corporate, is it comes under works contract ?

pls clarify whether supply of intangible use of service exists or not?

CA. C V SURYAM

CA. C V SURYAM (Expert)
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28 June 2013 Since there are no goods involved it does not fall under WCS category and hence RCM will not be applicable.

As far as taxability of hire charges, we need to see the agreement between your company and the hirer to look into constructive possession and the extent of transfer of right to use.

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