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Service Tax on Plant and Machinery

This query is : Resolved 

28 May 2009 Dear Sir,

Suppose if a company gives the Production Machine to the sister Concern on rental basis is service tax applicable on the same if yes than under which category it should be levied

Regards

Ravi Konda

28 May 2009 You need to ascertain, whether effective control and possession has been transferred.

If yes, the transaction will treated as deemed sale and liable to VAT.

If no, Service tax will be applicable under the category of "Supply of tangible goods for use".


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