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Dg services
why service tax is not applicable in case of DG rental services??
Replies (7)
If the DG set is given on rent without the transfer of possession and efective control, it is surely taxable under "Supply of tangible goods Service". However, the Service provider can claim SSI exemption upto the taxable service of Rs. 10 Lacs.
If effective control of the Genset is with
- you (SP) ---> Service Tax is levied
- client (SR) ---> Service Tax can't be levied as it is a transaction chargeable to VAT as Right to use which is deemed sale
(Assuming your company is not on the business of Transmission or distribution of electricity)
As our company transmission or distribute electricity but i dont know why our service provider from whom we take services of D.g rental didnt apply service tax.
You dont need to worry about service tax, because you are not required to pay service tax in any case,
Ya i know but i just want to know reason why they didnt deduct service tax
Service provider is from U.P
May be he is a small service provider under N/N. 33/2013
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