Service Tax on Rent/Hire Charges for movable Items

[GANESH B]

Service Tax on Rent/Hire Charges for movable (like machinery) items/equipment

AI Summary

Debate on Service Tax Applicability for Renting Machinery: 'Supply of Tangible Goods' vs. 'Financial Leasing' Perspectives A discussion on the applicability of service tax on rent or hire charges for movable items like machinery highlights two perspectives. One participant refers to the provisions under 'Supply of Tangible Goods Service' as per a specific taxable service code. Another participant explains that if control and possession of the items are transferred to the lessee, the transaction could fall under 'Financial leasing including equipment leasing and under hire purchase' for service tax purposes. If control and possession are not transferred and VAT is not paid, it might be subject to 'supply of tangible goods service.' The tax applicability depends on the agreement's nature.