TaxTMI 
TaxTMI 
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
Service tax, vat and tds applicability
20 Mar 2008 
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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. (AI Summary)
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. (AI Summary)