TaxTMI 
TaxTMI 
Generators are given on rent , Rs. 90000 per month. whether service tax applicable under rent of immovable property
renting of generator set
05 Oct 2014 
3 Replies 
19650 Views Asked by
Effective control determines whether renting a generator is taxed as a service or as a deemed sale subject to VAT.
Tax treatment of rented generator sets depends on which party has effective control: supplier control renders the supply a taxable service subject to service tax rules and CENVAT credit treatment of excise paid on the genset; customer control renders the transaction a deemed sale subject to VAT with availability of input tax credit. (AI Summary)
Tax treatment of rented generator sets depends on which party has effective control: supplier control renders the supply a taxable service subject to service tax rules and CENVAT credit treatment of excise paid on the genset; customer control renders the transaction a deemed sale subject to VAT with availability of input tax credit. (AI Summary)