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Service tax on leasing of movable assets

sImRaN (Student CA Final ) (84 Points)

21 May 2013

Is Leasing of furniture by company to institute, covered under Service of Tangible goods for use ??
whethr Service tax liability arises on Leasing furniture ??

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4 Replies

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 22 May 2013

Yes service tax will be applicable under right to use.

sImRaN (Student CA Final ) (84 Points)
Replied 22 May 2013

Originally posted by : Arun Kumar Singh
	Yes service tax will be applicable under right to use.

can u provide me some refernce of this in legal law & terms....

Sushma Mevacha (Executive) (394 Points)
Replied 23 May 2013

As per the Section 65 (105) (zzzzj) Any service provided or to be provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;

Meaning of Supply of Tangible Goods

The words ‘supply of tangible goods’ or ‘supply’ or ‘tangible goods’ have not been defined in statutory provisions of service tax. While goods have been defined in section 65(50) of Finance Act, 1994 to mean the same as in section 2(7) of Sale of Goods Act, 1930 and the same can be understood as per their general meanings.

‘Tangible goods’ are any sort of merchandise which actually exist in one form or the other. Paper, pen, furniture, computers, cars etc. are all examples of tangible goods. Tangible means those goods which have physical substance and can be touched.

Literally, tangible means a thing that is perceptible by touch; clear and definite, that which can be touched; material,

‘The word ‘supply’ is defined in the Standard Dictionary as ‘that which is or can be supplied; available aggregate of things needed or demanded; an amount sufficient for a given use or purpose’. In the Imperial Dictionary, it has been defined as ‘that which is supplied; sufficiency of things for use or want; a quantity of something furnished or on hand’.

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