- Equipment hired on monthly basis / hourly basis wherein diesel, all lubricants, operator, maintenance etc. shall be in contractor’s / service provider’s scope.
- Equipment hired on monthly basis / hourly basis wherein diesel shall be provided by Owner as free issue and all lubricants, operator, maintenance etc. shall be in contractor’s / service provider’s scope.
- Equipment hired on monthly basis / hourly basis wherein diesel charges shall be reimburse as per prevailing market rates and claim in same invoice of equipment hiring charges.
which reflect on tax
Guest
Service tax treatment of equipment hire where fuel is supplied, free-issued, or reimbursed requires clarification of invoicing and taxable character. Query concerns service tax treatment of three equipment-hire scenarios: provider-supplied diesel, owner free-issue diesel, and diesel reimbursed and invoiced with hire charges, and whether inclusion of operator and maintenance affects taxable character and invoicing. (AI Summary)
TaxTMI