10 November 2011
ONE OF MY BM MACHINERIES CO PVT LTD CLIENT IS SUPPLYING THE MACHINERIES ON RENT AND CHARGING VAT UNDER UP VAT ACT AS RIGHT TO USE OF EQUIPMENT.
OPERATOR IS ALSO PROVIDED BY THE BM MACHINERES CO PVT LTD TO JUST MAINTEN THE MACHINERY AND TO REPAIR THE MACHINERY.
MY QUESTION IS SERVICE TAX IS ALSO APPLIABLE IN THIS CONDITION.
I ALSO WANT TO KNOW THAT SERVIACE TAX IS APPLICABLE ON FOLLOWING CASES :-
1) IF ONLY MACHINERY IS PROVDIE 2) MACHINERY AND OPERATOR BOTH ARE PROVIDED BY THE COMPANY
11 November 2011
First of all check that whether it is a financial lease or operating lease. If it is financial lease then read section 65(105)(zm) or if it is a operating lease where intangible goods are supplied without transferring right of possession and effective control of machine then read section 65 (105)(zzzzj).
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