TMI BlogIs service tax is applicable on hiring of water tanker (lorry mounted) used for industry purposeX X X X Extracts X X X X X X X X Extracts X X X X ..... My query is that if service tax applicable under which account, and if applicable whether reverse charge is applicable or not??? is there any abatement prescribed for this service. - Reply By KASTURI SETHI - The Reply = Only service portion (supply of water) i s covered under Section 66 E (i) of the Finance Act .(Declared Services) How service portion is to be computed, it depends upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of the agreement/contract executed between the Service Provider and Service Recipient. No abatement is admissible inasmuch as Service Tax is leviable on only service (supply) of water and service may include rent of water tank also. Reverse charge mechanism will be applicable only if Service Provider is located in non-taxable territory and service receiver is in taxable territory. Othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwise not in normal circumstances. - Reply By Ganeshan Kalyani - The Reply = Yes service tax should be only on supply of water service. - Reply By Sanjay Vasava - The Reply = Dear Sir, I received a jcb hiring bill. In the bill fixed amount diesel cost are separately mention. I am confused service tax calculating only hire rent or rent + diesel. Please suggest. Thanks Regards, Sanj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay Vasava - Reply By KASTURI SETHI - The Reply = Sh.Sanjay Ji, It makes no difference whether price/expense of diesel is mentioned separately in the bill or not. Diesel has been consumed while providing taxable service to you. This is in relation to taxable service.Expense on diesel has been incurred in the course of providing taxable service. So as per definition of 'Consideration' i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Explanation (a) (ii) to Section 67 , expenditure incurred 'in the course of providing' taxable service will form part of taxable value. Hence ST will be paid on rent plus cost of diesel consumed. - Reply By Sanjay Vasava - The Reply = Thank you very much sirji. - Reply By Ganeshan Kalyani - The Reply = Sir, if I say that in case the bills of diesel charges levied on bill separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly is supported with the physical invoices, then will it not called as mere reimbursement and therefore no service tax is warranted. I would be wrong. This is because the reimbursable expense is also made taxable w.e.f. 14.05.2015. Thus, service tax shall be calculated on total invoice value. Thanks. - Reply By Sanjay Vasava - The Reply = Thank you sir. Sanjay Vasava - Is service tax is applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able on hiring of water tanker (lorry mounted) used for industry purpose - Query Started By: - kranthi kumar suryadevara Dated:- 31-12-2015 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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