My client gives helicopter on rent. Whether applicability of service tax arises?He got a notice from excise department raising demand of service tax.After getting notice he resigtered under "Supply of tangible goods" and paid the service tax liability. Now, he want to go for appeal.Pls suggest.
01 November 2009
The entry which needs to be examined is supply of tangible goods under service tax.
(1) Where the Tangible Goofs is hired out and the control and possession is given to the cusotmer the transaction would be liable under the VAT/CST law.
(2)Where the possession/ control is not given to the cusotmer then the same is liable under supply of tangible goods wef 16.5.2008.then liable to pay service tex,no need to go for appeal.
Pls also clarify helecopter given on rent will be covered under supply of goods.The word supply is creating confusion.Secondly, pls give your inputs with regards to possession and control.If there is one helicopter and given on rent how the VAT will be charged.