Equipment Hire/Rental Charges

[jagadesh kumar bhojanapalli Kumar]

Our company (HO & EOU both) has been registered under Service Tax Rules for GTA  only.  (one is 100% EOU in Ongole &  Hyderabad Head Office in Hyderabad) in different commissionerates.

We have billed a invoice on 31.03.2011 date for rental charges of vehicles/equipments (no excise benefit is availed - from non eou ) for period April to March 2011 where we are charged service tax @ 10.3% .  Payments were recd during this wk i.e., July, 2011.  We have not shown in service tax returns. 

Service engaged unit is also is our associated 100% EOU.

Please clarify :

Service Tax registration to be amended for Business Auxilary  Service/Mining Service

Service Tax to be paid in Ongole or in Hyderabad.

Interest is applicable or not if yes what is the %

Thanks

B.Jagadesh Kumar

[Atit Shah]

Dear,

You need to add one more service of  'Supply of Tangible Goods' by amending your Registration Certificate to the earliest (to avoid the penalty of late amendment of 30days),

If you have obtained centralised registration than at main place of business however if you have availed seperate registration for all the units seperately than ST it required to be paid from where the inovice is issued.

You need to deposit the same to the credit of the central government along with the rate of interest @15% if your turnover is below 60Lacs, else @18% p.a.

Regards,

Atit Shah & Associates

Chartered Accountants

(CA. Atit D. Shah)

 

[BHARAT PUROHIT]

DEAR

1) GTA REGN IS ONLY FOR SERVICES AVAILED.

2)U NEED SEPARATE REGN AS SERVICE PROVIDER AND THEN CAN BILL FOR RENT. U HV TO FILE RTN FOR NEW REGN AND PAY THE TAX WHICH U HV COLLECTED.I PROPOSE THAT U DONOT RECEIVE MONEY. FIRST TAKE REGN. THEN TAKE PAYMENT, PAY THE TAX WITH INT.( 13% PRIOR TO 01/03/2011 AND 18% THEREAFTER)

 B.B.PUROHIT

AI Summary

Guidance Sought on Service Tax Compliance for Equipment Rental Charges; Amend Registration and Address Payment Location A company registered under Service Tax Rules for Goods Transport Agency (GTA) services in Ongole and Hyderabad is seeking advice on handling service tax for equipment rental charges billed in March 2011. They have not included this in their service tax returns and need guidance on registration amendments and tax payment location. Two replies suggest amending the registration to include 'Supply of Tangible Goods' and paying service tax from the invoice issuance location. The applicable interest rates on late payments are 15% for turnovers below 60 lakhs and 18% for higher turnovers. Another reply advises obtaining separate registration as a service provider before receiving payments.