Service tax on Imported Lease goods

[Chetan Pawar]

Dear All,

We have import storage tanks on lease under Concessional rate of import duty when re-exported after use under Tariff custom notification No. 27/2002 [Cus] 1-3-2002. as we were paid the Custom duty under concessional rate. Every month the Party has given invoices in foreign currencies for lease/rent of this tanks and we have paid the same.

So my question is the same transaction are liable to pay service tax under reverse charge as in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory

Can anyone tell me as weather we have to pay service tax or not under reverse charge, if yes then please give me the all legal correspondence for the same.

AI Summary

Debate on Service Tax for Imported Leased Tanks: Reverse Charge Liability and Control Issues Under Notification No. 30/2012-ST. A discussion forum addressed the issue of whether service tax is applicable on imported leased storage tanks. A participant questioned the liability for service tax under reverse charge for leasing tanks from a foreign provider. It was suggested that service tax should be paid under reverse charge as per notification no. 30/2012-ST. Another opinion stated that if there is no effective control over the tanks, service tax may not apply, referencing a legal case where leasing tanks did not fall under 'Storage and Warehousing Services.' The debate also touched on refund possibilities for customs duty and the classification of leasing as a taxable service.