Renting of plant & machinery

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 RENTING OF PLANT & MACHINERY (JCB, POKLAND ETC.) IS COVERED UNDER SERVICE TAX OR NOT?
PROVIDING SERVICES THROUGH SUCH KIND OF PLANT & MACHINERY ON A CONTRACT BASIS IS COVERED UNDER SERVICE TAX OR NOT?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 September 2013 Yes it is covered by service tax.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 September 2013 If given on rent for use with no legal right of possession and effective control, then service tax attracts.

The account head is 'supply of tangible goods services'.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 Whether any abatement provision is there?
Can Assessee claim Cenvat Credit of Diesel & Maintenance of such Machinery?

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 Respected Sir,
We are not giving machinery on rent. We are taking contracts from variuos persons and using such machineries for performance of contracts. Contracts involve Digging of Soil, Levelling of Farm & Soil. Preparation of Border and Water Drainage in Farm and other ancillary activities.

So, in that case, we are executing a contract and not providing machineries on rent.

So, in that case, whether Service tax is applicable or not?

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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05 September 2013 U have to pay service tax on work contarct. Service tax on man power supply or service tax on job work or st on supply of machinery... Any one chose...