Service tax on jcb rent

This query is : Resolved

Sivaraman A R (Querist)
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12 October 2015 We have given contract to vendor whereby the Vendor will bring JCB and level the ground (land owned by our company) for construction of a Storage shed for keeping raw-materials

He brings JCB. That JCB is not owned by that vendor. He takes it on rent from some other person. Brings it to our factory, level the ground. He gives the JCB back to real owner. Our mechanical and civil and project department will overseas his work.

Vendor calculates his charge like this
Opening JCB reading time , CLosing JCB Reading time , No of hours worked * Rate per hour = Bill amount

That vendor has taken the following ST registration
1. Manpower recruitment agency - 00440060
2. Works contract service.- 00440410
3. Constuctions services in respect of commercial or industrial buildings and Civil structures.00440290

Questions
1. Is vendor necessary to take ST registration for Supply of Tangible goods for JCB renting.
2. Is it necessary that JCB should be owned by him only to put it under Supply of tangible goods service.
3. Can this JCB rental treated as part of Construction of civil structure services? (so that he need not take new registration for supply of tangible goods). If not why?
4. If we are treating the above as part of Construction service, can we claim abatement.?(There is no abatement for Supply of tangible goods)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 October 2015 1 No separate registration is required include this service in the existing registration.
2 Yes it should be owned by him.
3 No it can't be as no abatement for this service.
4 You can't claim abatement.

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