Service Tax On Aviation Service

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This query is : Resolved

Mukesh Kumar (Querist)

14 March 2009 We are a company in Aviation field.
Q. First we hire private chartered planes and further give them on hiring.

Will service tax is applicable on this service?
I am waiting for your reply.

Thanks & regards

Mukesh Kumar
Accountant
Delhi

Rajesh Kumar

Rajesh Kumar (Expert)

14 March 2009 Yes

Mukesh Kumar

Mukesh Kumar (Querist)

14 March 2009 thanks

Mukesh Kumar

Mukesh Kumar (Querist)

14 March 2009

Dayal

Dayal (Expert)

01 April 2009 This kind of hiring of equipment falls under the category of "Operating lease", which can be defined as :

Operating lease is a contract between the lessor and lessee such that the cost of the asset is not fully recovered from a single lessee. This means that the period of the lease will be shorter since the lessor will recover the cost of the asset from multiple lessees. Repair and maintenance of the asset is the lessor's responsibility.

If your activity is subject to above, then yes you stand covered under service tax.

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