Weigh Bridge given on hire falls under which Category

[Mehul Pandya]

Our Client were Provider on Weigh bridge services and but now they wish to give the weigh bridge on hire. they are registered under business support service.

Now my Query is that under which Category now should get registration., do we register under Supply of Tangible Goods.

Please solve the Query

Thanks in Advance

[YAGAY andSUN]

Dear Mehul,

In our opinion, "Supply of Tangible Goods" would be an appropriate classification for the above service.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mehul Pandya]

okay. thank you.

[Akash Deep]

Dear Mehul

First note that whether wight bridge qualify as goods or not. i think that the equipment you are referring is attached to the ground and you can not move it without dismantling it and in the from of weigh bridge only. i think that after installation it becomes immovable property and does not remain goods. if weight bridge does not qualify as goods suggested category by my learned friend may not be correct.

Secondly you also need to check whether effective control and possession of the goods (if weigh bridge qualify as goods) remain with the service provider or with you. if it is with you, it would amount to deemed sale and a transaction covered under Article 36629-A of the constitution of India. No service tax shall be applicable. yin that case you dont have to worry about appropriate category of serivce at all..

Regards

Akash deep

9873463912

[Mehul Pandya]

WE ARE GOING TO GIVE THE OFFICE ALONG WITH THE WEIGH BRIDGE TO THE SERVICE PROVIDER, IS IT DEEMED SALE? IF YES DOES IT ATTRACT ANY OTHER DUTY R TAX EXCEPT SERVICE TAX?

[Akash Deep]

Dear Mehul

your should take a detailed opinion. I dont hink this is the right palce to discuss the nitty gritty of your transaction.

Akash deep

[Rakesh Chitkara]

It is an activity for a consideration. Hence chargeable to service tax. Why is it important to classify into any category after the introduction of negative list abolishing classification ? Important probably for administrative reasons such as mention on tax payment challan or choosing a range. Even if wrong classification is mentioned, what difference does it make ? Your liabilities, rights and entitlements remain the same whether it is BSS or SOTG or ROIP or any other category. If you still want to be sure, inform the department in writing while seeking fresh registration. Any wrong decision, will then be their responsibility with no adverse repercussions to you.

AI Summary

Deemed sale may apply where possession and effective control of installed equipment transfers, potentially removing service tax liability. Whether hiring a weigh bridge is a supply of goods or a taxable service depends on whether the installed equipment qualifies as immovable property and on where effective control and possession remain. If the weigh bridge is immovable, it may not be goods and the transaction may be treated as a grant of use of immovable property. If it is goods but control transfers to the recipient, the transaction may amount to a deemed sale rather than a taxable service. Under the negative list regime, category choice is mostly administrative; registrants should notify the department and seek detailed advice.