Rate of Tax for Hiring of machinery, Goods and Services Tax - GST

[T.K. CHANDRASEKARAN]

What will be the Rate of Tax under GST for Hiring of Machinery & Equipment without transfer of active possession (not lease) ? Renting of machinery where ever the active possession passed on from the person hiring to the person using the machinery on hire will be a LEASE transaction. So, in this case, it is not a lease.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Hiring of Machinery & Equipment is a service falling under Service Accounting Code 9973.

[T.K. CHANDRASEKARAN]

Thank you very much Mr. Rajagopalan Sir. The real issue is whether the hiring above referred is to be taxed under Other Services Head @ 18% or to be taken as Lease or Rental taxable at rate applicable for that kind of machinery treating it as "Lease"? I am expecting a discussion in this regard.

[KASTURI SETHI]

No difference between leasing or renting in the eyes of Service Tax Law or GST Law.