Service tax on machinery & tools
This query is : Resolved
30 April 2013
OUR COMPANY GIVES THE SOME MACHINERY & TOOLS ON RENT WHERE ANY APPLICABILITY OF SERVICE TAX?? KINDLY SUGGEST IF YES IN WHICH SERVICE
30 April 2013
such transactions normally covered under operating lease, and hence a declared service and taxable.
66E(f)
operating lease : 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.
66E(f)
operating lease : 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.
30 April 2013
A) Renting of movable goods:
1) If Control of such goods is transferred to the lessee: Such transaction attracts levy of VAT/CST. Eg: Hire of chairs etc
2) If Control of such goods is retained by lessor: Such transaction attracts levy of Service Tax. Eg: hire of machinery with operator. Where operator is the employee of the lessor
B) Renting of immovable property – attracts levy of service tax
Saransh S
H.M. Giriya & Co
1) If Control of such goods is transferred to the lessee: Such transaction attracts levy of VAT/CST. Eg: Hire of chairs etc
2) If Control of such goods is retained by lessor: Such transaction attracts levy of Service Tax. Eg: hire of machinery with operator. Where operator is the employee of the lessor
B) Renting of immovable property – attracts levy of service tax
Saransh S
H.M. Giriya & Co
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Query regarding TDS on EPFO Higher Pension Arrears*
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
