TAXABILITY UNDER NEW REGIME

[Harishanker Patel]

If a business entity take a service eg hiring of JCB for an activity under CSR which have to done by business entity. Whether service taken by business entity is taxable under new regime.

[Dilip Darji]

A person making payment to transporter is liable to pay Service @ 12.36 % on 25 % value of transportation charges, in the new regime. Transporter need to declare in his his bill and consignment Note that he has not availed CENVAT credit on Input, Capital Goods and Input services.

[Harishanker Patel]

I am asking the taxability of hiring of JCB (not transportation) which have been taken on hiring for an activity (Expect construction or maintenance of road) done by a business entity for public use under corporate social responcibility.

Whether service taken by business entity is taxable under new regime.

[RAJENDRA JOSHI]

Yes Hiring of Machinery or equipment is liable for service tax in new tax regim as this is not covered under negative list and also not covered in mega exemption under service tax

AI Summary

Taxability of machinery hire: hiring construction equipment for CSR activities attracts service tax as it is not exempt. Hiring of construction machinery or equipment by a business entity, including for Corporate Social Responsibility activities, is taxable under the new service tax regime because it is not on the negative list or covered by the mega exemption. In contrast, transportation services attract service tax at the prescribed rate on a defined portion of charges, and transporters must declare non availment of CENVAT credit in bills and consignment notes.