Service tax applicability on crane service

In terms of section 66B of Finance Act, 1994, Service tax shall be levied on all service provided or agree to be provided in a taxable territory, other than services specified in negative list.

as per my view You are liable for the payment of service tax.

Service tax is payable on declared services. Section 66E of Finance Act 1994 deals with Declared Services. Clause (f) of the said section reads as follows- "Transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods." In your case, your client is giving crane on hire ALONG WITH OPERATOR and fuel, which indicates that there is NO transfer of right to use. Since the activity is hiring of goods without transfer of right to use, service tax is applicable.

Sir, if only crane hire what is the position.

Sir, if only crane hire what is the position.

Sir, if only crane hire what is the position.

Sir, if only crane hire what is the position.

Sir, if only crane hire what is the position.

Providing crane on hire, without providing operator amounts to transfer of right to use/ effective control. It will be considered as Deemed Sale and applicable State VAT/Sales Tax shall be paid on such Hire charges.

 

Whether there is a transfer of right to use or not depends on case to case basis. One may have to go throught the Agreement entered by two parties to conclude if there lies any transfer of right to use or otherwise.

Very gud reply..understood the concept

How much Gst for crane hire