Applicability of service tax - Led display

[Guest]

weather service tax applicable on equipment(LED DISPLY BOARD) given on lease rent basis as per one year contract. thanks & regards

[Ravi Chopra]

May or may not be. Is it deemed sales as per the local VAT act. If yes, and you are discharging vat on such transaction, there is no service tax. On the other side, if it is not subject to vat you need to pay service tax on the same transaction.

[madhavvan n]

as per provisions of sec 65(zzzzj)service provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;] is liable for service tax wef 16/5/08 there is no mention whether vat is chargeable or not hence in my opinion where state specific vat law provides for levy of vat on lease of plant / equipment / appliances and it falls within purview of above definition as provided in service tax then service tax is applicable on the aforesaid lease transactions excluding vat

AI Summary

Debate on service tax for leased LED display boards under Section 65(zzzzj); VAT status determines tax applicability. A discussion on the applicability of service tax on LED display boards leased on a one-year contract basis. One participant suggests that if the transaction is considered a sale under local VAT laws and VAT is paid, service tax is not applicable. Conversely, if not subject to VAT, service tax must be paid. Another participant references Section 65(zzzzj), stating that service tax applies to the supply of tangible goods without transferring possession and control. They conclude that if VAT is levied on such leases per state law, service tax is applicable, excluding VAT.