ON STORAGE TANK RENTAL

[sicgil industrial gases]

WE ARE SUPPLIYING OUR OWN GAS STORAGE TANK TO OUR CUSTOMER ON RENTAL BASIS, AND WE ARE CHARGING MONTHLY BASIS RENTAL ( GUJARAT ) WE HAVE TO CHARGE SERVICE TAX OR VAT OR BOTH KINDLY CLARIFY THE SAME GURU 9898067382

[Rama Krishana]

It appears that storage tanks are movable asset which you supply on rental basis. Where you transfer the storage take without transferring right to control and possession to your customer, you need to pay service tax otherwise, else where you transfer the storage with right to possess and control in favor of your customer, you need to pay VAT.

AI Summary

Tax treatment of rented storage tanks: service tax if control retained by supplier, VAT if possession transferred.
Storage tanks supplied on rent are movable assets. If the supplier does not transfer the right to possession and control, service tax applies; if the supplier transfers the right to possess and control to the customer, VAT applies.