Service Tax applicability on hiring of cranes

[paresh zatakia]

a person is hiring out cranes more than 4 lacs receipt,whether he is laible to service tax?

[Madhukar N Hiregange]

Dear Paresh, I presume that the crane is given with an operator. This is not a lease and therefore there maybe no liability under service tax. This can be called cargo handling if the same is used for loading and unloading and a contract forloading or unloading exists. If the same is under the direction and supervision of the cusotmer then it would notbe cargo handling.

[Surender Gupta]

The question depends on various factors. What is the nature of contract. If it is pure rent rent (hiring agreement) then it is not liable to service tax.

[Guest]

Dear Sir

Please guide us what is service tax accounting code for renting of crane

AI Summary

Service tax applicability for crane hire depends on contract nature; rent-only exempt, cargo-handling services taxable and operator supervision alters classification. Whether service tax applies to hiring of cranes turns on the contractual character and operational control: pure hire or rental is not a taxable service; provision of a crane with an operator may amount to a contract for loading or unloading and be treated as cargo handling attracting service tax; where the operator works under the customer's direction and supervision it is less likely to be cargo handling. The decisive factors are contract terms, presence of operator, scope of services and control; an accounting code query was also raised.