TaxTMI 
TaxTMI 
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.
TAXABILITY UNDER NEW REGIME
29 Jun 2012 
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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. (AI Summary)
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. (AI Summary)