b.sreenivasa rao (Employee) (445 Points)
01 June 2010
Can any body tell me what are the procedures related if we hire or rent the machinery Equipments related with surgical and pharma equipments from outside the country. That is renting the machinery equipments from USA, UK etc., Whether Service tax is levied on the Renting of Movable property from outside the Country. Plz guide me the procedure to my mail ID.
Regards
Sreenivasa rao
rao.sreenivasa1 @ gmail.com
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 02 June 2010
Service tax is payable on reverse charge method, i.e. the receiver of service is liable to pay Service Tax.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 02 June 2010
There isno servic etax liability for renting of movable property. If rented/ hired from one in India then VAT/ CST wouldbe attarcted.
ST is attracted only when the control and possession of the movable is with the owner. If so then it wouldbe taxable under supply of tangible goods. In your case there is no such transaction
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 02 June 2010
The transaction would fall under the purview of :Supply of Tangible goods' if the agreement stipulates that the movable goods shall be operated under the control and supervision of the supplier. If the indian company is entitled to use the movables without interference of the supplier, then service tax is leviable under reverse charge mechanism
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
