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Regarding rent the Lorry.

Samik Chaudhuri

Sir

Our manufacturing Co owned two Lorry which gave to a Transport Company on rent for transportation. This Transport Co regularly carries our consignment and raises bills and we make the payment of Service Tax. Transport Co also made payment for rented vehicle. Now i would like to know whether this payment is received by our company for rented vehicles is Service Taxable or not? Please suggest me.

With thanks

Samik Chaudhuri.

Taxability of vehicle rent: payments for lorries hired to a transport company are taxable under service tax and GST. Whether payments received by a manufacturing company for letting owned lorries to a transport company are taxable: the respondent advises that such receipts are taxable under both service tax and GST, affirming indirect tax liability on the rental payments received for the vehicles. (AI Summary)
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KASTURI SETHI on Jun 22, 2017

Yes it is taxable under GST as well as Service Tax.

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