Applicability of service tax - Led display

[Asked by 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

Service tax on lease of tangible goods: taxable when possession and control are retained and not treated as deemed sale under VAT.
Leasing an LED display is service-taxable when the provider supplies tangible goods for use without transferring the right of possession and effective control; if the transaction is treated as a deemed sale and subject to VAT under state law, it is not treated as a taxable service, but where VAT is levied on such leases the service tax liability is applied excluding VAT.