Lease Rent of Machinery

Applicability of Service Tax is subject to threshold limit  of Rs. 800000 as turnover for service rendered in FY 07-08, & Rs 1000000 in FY 08-09.

value of service rendered in the example is less than threshold limit.

No service tax registration is required.

TDS u/s 194 I is applicable.

Pl intimate for other inputs.

service tax is applicable when your gross receipt is rs 1000000/- or more in the f y  2008-09 otherwise registration is not required

Ur case does not appear to be falling under any taxable catagory. WEF 16/05/2008 renting of immovable property, where VAT is not applicable, will be covered under Service tax.

Pls check, whether u r liable under VAT / Service Tax.

'Dear All,

Thanks for reply.

Our company already cross limit of Rs. 10,00,000 in other services like Job work. Hence no question of Limit.

Now question arise only in relation to appliacablity of service tax and registratin of that service .

Please suggest.

Thanks & Regards

Ca. B.K.BANSAL

Dear All,

Our comapny involved in construction business, now we givien on machinery to our sub-contractor on rent. I wants to know weather we are charged Service tax or we cahrged VAT on the above said Rent.

Am highly thankful for your view.

Regds

S.P.Shukla

U can only pay service tax on the value of services provided .

The right to use a machinery is a subject matter of VAT. However if the possession is not given and the lessor retins the control and possession buy the same is used by the lessee then wef 15.5.2008 it would be liable under supply of tangible goods.