22 March 2010
HI the company entered in to a contract to provid a copying machine to other comp and charges 4000/month and it charges service tax also eventhough only provides a machine not any men.is service tax is chargeable ? thank you.
22 March 2010
Q1. Service tax rate is uniform for all services. Currently it is 10.30%(inclusive of Edn. Cess).
Q2. Hire of equipments are taxable service. Service tax is chargeable.
However, since no manpower has been supplied, implying thereby, effective posession and control of the equipment has been transfered, in my view, VAT should have been charged, in place of Service tax.