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2011 (4) TMI 30 - AAR - Service TaxRenting (leasing) of movable properties - Advance Ruling - applicant proposes to enter into a new business and wants to seek a ruling regarding its liability to pay service tax, if any, on that business - the equipment is purchased or taken on lease by the applicant - The answer to the question would also depend upon the nature of the actual transaction that is proposed to be entered into and the vague facts set out in the application would not justify rendering a ruling thereon - Since exclusive possession and effective control of the equipment is to be transferred to the lessee during the term of the lease, Section 65(105)(zzzzj) cannot also be attracted - Held that - the proposed leasing of the locomotives coaches/wagons by the applicant for a short duration to a lessee on a rent, the term or rent bearing no correlation to either the life of the equipment or the cost of the equipment, would not be exigible to service-tax under the Finance Act, 1994 on the basis of the definition in Section 65(12) of the Act - not liable to service tax.
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