TaxTMI 
TaxTMI 
i wanted to ask question rearding service tax that our company imported LED Display Board from Taiwan and that board we given one of reg.company on mnthly lease rent basis installed at Bangalore and billing on mumbai address.our company is in mumbai only. we charged m.vat @12.5% on rent amt., can we charged service tax also on that lease contract.plz specify
Applicability of service tax - Led display
12 May 2009 
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Transfer of right to use: lease characterisation decides whether sales tax applies or service tax on supply for use.
Characterisation of the leased LED display as a transfer of the right to use with exclusive possession determines sales tax treatment as a deemed sale; absent such transfer of possession and effective control, the arrangement is taxable under the supply of tangible goods for use service entry and service tax applies to lease rentals, with the taxable base excluding inter state sales tax. (AI Summary)
Characterisation of the leased LED display as a transfer of the right to use with exclusive possession determines sales tax treatment as a deemed sale; absent such transfer of possession and effective control, the arrangement is taxable under the supply of tangible goods for use service entry and service tax applies to lease rentals, with the taxable base excluding inter state sales tax. (AI Summary)