Machinery hire charges taxable or not in j& k state

Dear all,

we are giving our construction machinery & vehicles to xyz ltd on hire for their works in jammu& kashmir. we are collecting the hire charges from xyz ltd. whether these hire charges are liable for sales tax or not.if these chargesare liable for sales tax, what is the rate of tax?, 

Replies (3)

Its not a sale of goods, there is no transfer of ownership so sales tax is not applicable. Service tax wil be applicable but since service provided in J&K . ST is also not applicable

Sales tax will be applicable only when the goods are marketable and movable.

From which state you are hiring the machinery to J&K?  There is a provision in the name of "Right to use" under VAT Act.  Hence kindly apply this point whether the machineries are covered in your state VAT act under the charging section of Right to use. 

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