hiring of machinery

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sachin (Querist)
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12 May 2008 one of pvt ltd company deals in hiring of machinery such as JCB, pocklane, dumpers etc., for excavation work.to the site on hrs basis. Is service tax is applicable on hiring of such machinery ? If applicable, in last year they did not collect any service tax. so what will be remmedy? and they also gives truck for transport should also this covers in service tax? pls guide early and give explanation through with law so that i can refer.

Hari Venkata Ramana

Hari Venkata Ramana (Expert)
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12 May 2008 FOR HIRING OF MACHINERY, there is no service tax for the financial year 2007-08. This is only introduced in budget 2008-09 which is approved by President on India on 10.5.2008. Hence Service tax is applicable only from 2008-09 financial year that to from may mid. I am not sure wthere this is there is the approval finance act. please check up. I will try to update u soon.

sachin

sachin (Querist)
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19 May 2008 one of pvt ltd company deals in hiring of machinery such as JCB, pocklane, dumpers etc., for excavation work.to the site on hrs basis. Is service tax is applicable on hiring of such machinery ? If applicable, in last year they did not collect any service tax. so what will be remmedy? and they also gives truck for transport should also this covers in service tax? pls guide early and give explanation through with law so that i can refer

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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21 May 2008 Hiring of movable properties is taxable wef 16/05/08, if VAT is not applicable. Offereing trucks on hire also appears to be covered under the said service.