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Service tax applicablity on hiring of water tanker

GIRIDHAR (Sr. Associate - JV Finance) (31 Points)

09 November 2011

Hi Members,

Please help me to get an idea for " Hiring of Water Tanker -12KL" is coming under the perview of service tax applicablity. How do I treat this has purchase or service, If it has service applicable please mention the rate of tax to be paid ?

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4 Replies

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 09 November 2011

To me it is a taxable service chargeable under section 65(105)(ZZZZj) -- supply of tangible goods.

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 09 November 2011

Assuming that the taker has been hired for fixed rent but possession and control has not been passed on, it is taxable under supply of tangible goods and service tax is payable. If possession and control has been passed on, it is taxable under VAT. Instead of fixed rent, if it is freight charges for transportation of water, then service tax is payable under GTA.