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

AI Summary

Gas Storage Tank Rentals: Service Tax Applies Without Transfer of Control; VAT Required With Transfer of Control Rights. A company supplying gas storage tanks on a rental basis in Gujarat sought clarification on whether to charge service tax, VAT, or both. The response indicated that if the storage tanks are provided without transferring the right to control and possession to the customer, service tax is applicable. Conversely, if the right to possess and control is transferred to the customer, VAT should be charged.