DG on rent - Applicability of service tax or vat, Service Tax

[Dilip Chokhra]

1. When we give DG on Rent or Hire to Other party t5han it will cover under Service tax ? If yes, than which service we will cover this. 2. It it is not covered under Service tax,than we will charged VAT as rights to use give to other party like we will hire equipment Dumper , Payloder ? It yes than what is the Rate of VAT.

Posts / Replies

[sudhir V S]

Hiring of DG set in the nature of operating lease is not covered under Service Tax it will be subject to VAT as the deemed sale (right to use) The VAT rate will be applicable as per the schedules of the respective state VAT Act.