service tax on renting of genset

[satbir singhwahi]

genset is rented to clients and receipts are more than 20 lacs , whether service tax ia applicable as service is of producing electricity.

AI Summary

Service Tax Applies on Renting Gensets Over 20 Lakhs Unless Client Qualifies as Utility; VAT Applies if Client Controls. A query was raised regarding the applicability of service tax on renting a genset, with receipts exceeding 20 lakhs, for electricity production. One response clarified that exemptions under the Negative List for electricity transmission or distribution apply only to utilities in that sector. Therefore, if the client does not qualify as such a utility, service tax is applicable. Another response emphasized that if the company maintains effective control over the genset, service tax applies. Conversely, if the client has control, VAT applies under deemed sales, but no exemptions are available as the company is not involved in electricity transmission or distribution.