Respected Sir,
I want to know that if any body provided heavy vehicle to factory by giving Transfer of Right to Use. Under such circumstances what is the duty of the factory regarding Service Tax and the provider of heavy vehicle. Please specify that who is liable to pay service tax, How should the provider of heavy vehicle charge against his bill for the vehicle.
Thanking You.
Given that heavy vehicle is taken on hire by a factory.
Since this is not for transport of passengers, Service Tax is not payable under reverse charge, considering Notn No. 30/2012 dated 20.06.2012, which prescribes the persons who are liable to pay Service Tax under Reverse charge (At serial No. 7).
Since the vehicle is given to the factory on hire, unlike on a consignment basis, in which case also, Service Tax is not payable under reverse charge, vide Serial No.2 of the above mentioned notification.
Hence, Service Tax needs to be charged by the person providing the vehicles on hire in his invoice for his services - This service falls under the head "Supply of Tangible Goods" Service.
Please revert in case of any clarification.
CAclubindia
