Service tax and vat on photocopy machine

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2013 XU limited provides a photocopy machine to Y Limited. XU also maintains the machine. Can XU pay the service tax or vat on bill charged to the Y on monthly basis.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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30 April 2013 this is in the nature of operating lease and yes service tax will be taxable under the same service
66E(f)

if XU is also providing the papers along with the machine then the situation is critical.. as need to check work contract liability as per state law, then service tax on abated value.
In gujrat it is taxable as work contract.

Note: the taxable service value upto 10 lacs is exempt.