Service tax on rent of diesel generating set

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CA ROHIT KUMAR SAMAR

CA ROHIT KUMAR SAMAR (Querist)
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20 December 2008 Whether service tax is applicable on rent of diesel generating set

BALU V

BALU V (Expert)
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21 December 2008 If there is no VAT and the control of the geneset is yours means you are liable for payment of service tax

S. Banerjee

S. Banerjee (Expert)
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28 December 2008 Mr. Rohit,
"Renting of immovable property" as per section 65(90) covers renting, letting, leasing, licensing or other similar arrangement. Thus if these transactions or activities are carried out in relation to "immovable property" they are covered under the above mentioned services.
The term "immovable property" by itself has not been defined but while defining taxable service under this head in clause (zzzz) of section 65(105), it has been defined as an explanation, in which certain inclusions are given, which are mostly land and building and also provides fro certain exclusions like vacant land solely used for agriculture or used for residential purposes. etc.
"Immovable property" as per section 3(26) of General Clauses Act, shall include land, benefits to arise out of land and things attached to earth or permanently fastened to anything attached to earth.
If this definition is considered for applicability of service tax, rent of diesel generating set will not liable to Service tax come under the head of "Renting of immovable property".
Thanks, S. Banerjee

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