Service tax on renting of heavy vehical

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G MAHESH

FINANACE MANAGER

32 Points Joined October 2009

Sir,

we are being private limited company providing renting service of Heavy Vehcials like Trailars to another company on monthly basis per trailar rent 150000/- with including driver, diesel and mainatainance exp.

i would like know that what is the rate service tax to be pay and is VAT applicable/not

Mahesh

Replies (1)

Neljo Davis ACA

Consultant

630 Points Joined October 2008

VAT is applicable only for transfer of right to use any goods. The transfer of right to use should include possession and control over the goods. Since the heavy vehicle is provided along with driver VAT will not be applicable.