Transfer of goods by way of hiring, leasing, licensing or in any other manner

Transfer of right to use goods: service tax applies where possession and effective control remain with the owner.

The declared service covers transfer of goods by hiring, leasing, licensing or similar arrangements where there is no transfer of right to use, which depends on whether possession and effective control pass to the transferee; arrangements in which the owner retains custody, permissions, legal authority or risk (for example hire with driver, owner-controlled project equipment, bank lockers, owner-responsible vehicle hire, and owner-risked audiovisual hire) do not effect a transfer of right to use and fall within the declared service.