renting of generator set

[satbir singhwahi]

Generators are given on rent , Rs. 90000 per month. whether service tax applicable under rent of immovable property

AI Summary

Renting Generators: Service Tax Applies if Company Controls; VAT Applies if Client Controls. VAT ITC Available with Client Control. A query was raised about whether renting a generator for Rs. 90,000 per month is subject to service tax under the category of renting immovable property. Responses clarified that renting generators does not fall under this category. Instead, it may be classified under Supply of Tangible Goods or Deemed Sales, depending on who has effective control over the generator. If the company retains control, service tax applies; if the client has control, VAT applies. Additionally, VAT ITC is available if the generator is provided with effective control and possession to the customer.