Service tax

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sir,

Hire of machineries by a pvt limited company to a Other Limited company for a project of Domestic Airport is taxable under service tax. Since services for building airport ,dams are exempted. Kindly clarify Whether taxable or not  

 

Thanks

 

Replies (1)

Dear Sir,

Though the service of building/constructing/installing/commissioning etc. of airport, dams are exempted under service tax, but you are not providing that service... you are just giving the machineries on hire to them for their service... i think, the service tax should be exempt in their hands.. not on the person who is providing machinery on hire.

 

 

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

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