TaxTMI 
TaxTMI 
Service Tax on Rent/Hire Charges for movable (like machinery) items/equipment
Service Tax on Rent/Hire Charges for movable Items
07 Oct 2008 
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Control and possession determines service tax classification for hire of movable equipment under leasing or supply regimes.
Service tax on hire or rent of movable items depends on whether control and possession are transferred: if transferred, classify as financial leasing (including equipment leasing) or hire purchase for service tax; if not transferred and VAT is not paid, it may fall under the supply of tangible goods service. Determination requires examination of the agreement's nature and allocation of rights and possession. (AI Summary)
Service tax on hire or rent of movable items depends on whether control and possession are transferred: if transferred, classify as financial leasing (including equipment leasing) or hire purchase for service tax; if not transferred and VAT is not paid, it may fall under the supply of tangible goods service. Determination requires examination of the agreement's nature and allocation of rights and possession. (AI Summary)