Service tax, vat and tds applicability

[Guest]

Carne Hiring Service : Facts : Carnes are given on Hire to Companies for a period of 1-3 months with Driver.Cranes are used at the site of such companies. Queries :- i)Is Service Tax Chargeable? under which category? ii) Is Vat also Chargeable? iii)What is the rate of TDS will it be under 194I or 194C at  please note that we provide driver+ carne. Regards

[Guest]

From the given facts i. Activity will attract Service tax under the category of 'supply of tangible goods without right of control' proposed in the recent Union Budget 2008. ii. VAT is not attractable as effective control/possession is with the lessor himself. iii. TDS attractable u/s 194I of Income tax Act.

AI Summary

Service tax on crane hiring: classified as supply without transfer of control, with VAT excluded and TDS applicable. Crane hiring with operator constitutes a service taxable as a supply of tangible goods without right of control under the Union Budget 2008 classification; VAT does not apply because effective control remains with the lessor; TDS is deductible on payments for hire of plant and machinery reflecting rent treatment.