We are service provider and giving our owned Barges on hire. We are registered with Service Tax authority under service category “Supply of Tangible goods” and paying appropriate Service Tax. Though the barges are owned by us, the manpower require to run these Barges are provided by the third party.
Kindly let us know whether we are correctly paying the Service Tax amount under service category “ Supply of Tangible goods” or we have to pay service Tax amount under service category “Ship Management Service”.
Regards,
VINAY
Service provider seeks clarity on service tax category for hiring barges: 'Supply of Tangible Goods' or 'Ship Management Service'? A service provider inquires about the correct service tax category for hiring out owned barges, questioning whether it should be under 'Supply of Tangible Goods' or 'Ship Management Service.' They note that a third party provides the manpower for operating the barges. Responses suggest that 'Supply of Tangible Goods' is appropriate, but clarification is needed on who pays the third party. If the customer pays, it may not fit this category, as the provision requires no transfer of possession and control. The contract terms should be reviewed for clarity. (AI Summary)