Applicability of service tax - Led display, Service Tax

[SWATI]

weather service tax applicable on equipment(LED DISPLY BOARD) given on lease rent basis as per one year contract. thanks & regards

Posts / Replies

[Ravi Chopra]

May or may not be. Is it deemed sales as per the local VAT act. If yes, and you are discharging vat on such transaction, there is no service tax. On the other side, if it is not subject to vat you need to pay service tax on the same transaction.

[madhavvan n]

as per provisions of sec 65(zzzzj)service provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;] is liable for service tax wef 16/5/08 there is no mention whether vat is chargeable or not hence in my opinion where state specific vat law provides for levy of vat on lease of plant / equipment / appliances and it falls within purview of above definition as provided in service tax then service tax is applicable on the aforesaid lease transactions excluding vat