26 March 2009
One such service is the supply of tangible goods, including machinery, equipment and appliances for use where there is no transfer of right of possession and effective control. This proposal intends to bring into the service tax net wet lease arrangements that are typically entered into by various airlines, shipping companies & oil and gas companies wherein the lessor provides aircraft/ship/rigs with complete crew, maintenance and insurance to the lessee in return for a consideration based on operating hours. Such arrangements are outside the ambit of value-added tax (VAT) because they lack the essential ingredient of transfer of right of possession and effective control
You may evaluate your arrangement in light of the above clarification, and derive your liability to pay or whether not payable
26 March 2009
One such service is the supply of tangible goods, including machinery, equipment and appliances for use where there is no transfer of right of possession and effective control. This proposal intends to bring into the service tax net wet lease arrangements that are typically entered into by various airlines, shipping companies & oil and gas companies wherein the lessor provides aircraft/ship/rigs with complete crew, maintenance and insurance to the lessee in return for a consideration based on operating hours. Such arrangements are outside the ambit of value-added tax (VAT) because they lack the essential ingredient of transfer of right of possession and effective control
You may evaluate your arrangement in light of the above clarification, and derive your liability to pay or whether not payable
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