Dg services
Tushar (ca final) (147 Points)
06 November 2014
why service tax is not applicable in case of DG rental services??
7 Replies
DEEPAK
(STUDY )
(70 Points)
Replied 07 November 2014
If the DG set is given on rent without the transfer of possession and efective control, it is surely taxable under "Supply of tangible goods Service". However, the Service provider can claim SSI exemption upto the taxable service of Rs. 10 Lacs.
Vinay Garg
(Service Tax Expert)
(780 Points)
Replied 07 November 2014
If effective control of the Genset is with
- you (SP) ---> Service Tax is levied
- client (SR) ---> Service Tax can't be levied as it is a transaction chargeable to VAT as Right to use which is deemed sale
(Assuming your company is not on the business of Transmission or distribution of electricity)
Tushar
(ca final)
(147 Points)
Replied 08 November 2014
As our company transmission or distribute electricity but i dont know why our service provider from whom we take services of D.g rental didnt apply service tax.
Vinay Garg
(Service Tax Expert)
(780 Points)
Replied 08 November 2014
You dont need to worry about service tax, because you are not required to pay service tax in any case,
Tushar
(ca final)
(147 Points)
Replied 08 November 2014
Ya i know but i just want to know reason why they didnt deduct service tax
Gagan Deep Singh
(CHARTERED ACCOUNTANT)
(1190 Points)
Replied 26 November 2014
May be he is a small service provider under N/N. 33/2013
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