leviability of service tax on operat lease of motor vehicles

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 Whether service tax is leviable on lease of motor car . if yes under which category. whether under supply of tangible goods or any other head.What is the value of taxable service.

ABHINAV AHUJA

ABHINAV AHUJA (Expert)
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15 August 2010 Service Tax under supply of tangible goods is applicable when goods are supplied without transferring the right of possession and effective control.

In operating lease , to my understanding , the control is given to lessee. Hence here in VAT will apply i.e. Transfer of Right to use goods.