SERVICE TAX ON GENSET

This query is : Resolved

CA Parag (Querist)
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15 July 2009 DEAR EXPERTS,

Suppose Mr.A rents generator sets to Mr.B who in turn rents it to Mr.C a customer.Mr.A also rents to Mr.C directly.

Who is liable to pay service tax when Mr.A rents to Mr.B who in turn rents to Customer?

Please advise me. Reference to any case law may also be given.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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15 July 2009 If it is just a renting of generator then only VAT would be applicable.
If the control and possession is not given by A to B or C then only servic etax would be applicable.