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computation of service tax on equipment leasing, Service Tax |
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computation of service tax on equipment leasing |
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Please let me know whether serive tax has to be levied on the equipments leased by a manufacturing company to its associate Company. Iin the State of Karnataka VAT is being charged on the Lease Rental ( Depn+Int charges) If service tax is applicable what is the abatement available.
Posts / Replies Showing Replies 1 to 2 of 2 Records Page: 1
If transfer of possession/control does not exist, service tax will apply under the category of 'Supply of Tangible Goods Service'. Please refer Ministry's Circular/Letter D.O.F.No 334/1/2008-TRU dated 29.2.2008. In cases of transfer of possession/control in such leasing transactions, only VAT will be applicable.
if there is no transfer of possession or effective control by the service provide then service tax would not be applicable only VAT will be applicable. Page: 1 Old Query - New Comments are closed. |
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