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Service tax on machinery

suchandan (Accounts Executive) (43 Points)

09 September 2008

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.

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3 Replies

DEEPIKA GOEL (C.A) (419 Points)
Replied 09 September 2008

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.

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Viragshah (Articled Assistant) (24 Points)
Replied 10 September 2008

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.