TaxTMI 
TaxTMI 
Service Tax applicability on hiring of cranes
12 Jul 2006 
3 Replies 
16298 Views Asked by
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. (AI Summary)
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. (AI Summary)
a person is hiring out cranes more than 4 lacs receipt,whether he is laible to service tax?