we have given a machine for rent to industry on rental charges. Should we pay Service Tax on the rental charges of the machine we are giving? please give your suggestion.
we have given a machine for rent to industry on rental charges. Should we pay Service Tax on the rental charges of the machine we are giving? please give your suggestion.
If u have business of renting machinery to industries, then service tax shall be leviable. However, if one time transaction then no service tax shall be leviable.
To describe the transaction in technical terms; if the transaction is "a let out of idle capacity", then it qualifies as income from busines profession only. But if the assessee carries on these type of transactions "normally" i.e. to say in his normal day-to-day activity, then service tax is leviable.
What is reverse charge in service tax when it is applicable
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