If person A giving earthmoving machienery to B (plant) against "contract for deployment of manpower along with equipment for plant operation" for 1 years.here person A need to register ST no?also want to know if ST applicale how can he recieve it from B?
Service tax for providing machineries as hire
Replies (3)
Dear Vijay,
Yes, this service will be liable to service tax under the category of "supply of tangible goods service". [Section 65(105)(zzzzj)]
You have to charge the service tax while issuing the invoice.
i.e. for e.g.,
| Particulars | Amount |
| Service Charges for renting the machinery | xxxxx |
| Add: Service Tax @ 12% | xx |
| Add: Education Cess @ 2% (of service tax) | x |
| Add: Secondary & Higher Education Cess @ 1% (of service tax) | x |
| Total | xxxxx |
Hope your doubt is clarified...
Thanks sir for your valued reply...is i need to pay ST if my overall bill within 10lac annually?
No need to pay if your annual billing is less than 10 lakhs..
Once it crosses 9 lakhs, you need to register under service tax, but start paying tax only after it crosses 10 lakhs..
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