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TMI BlogService tax applicability on renting cranes for metro rail workX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, Kindly provide your precious views over applicability of service tax on the contract where a party has agreed to provide cranes for fixing barricades to metro corporation. The contract provides for minimum barricading to be put, and contract is for piece meal rate, however also states that even if party does not put minimum barricades to place, it will still be paid minimum prescrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed amount. Can this be claimed as exempt from service tax? This case is of 2015-16 - Reply By KASTURI SETHI - The Reply = This service falls under, Right To use of Tangible goods Services specified under Section 65(105)(zzzzj) of the Finance Act . No exemption from ST is available. Not available even in Notification No.25/12-ST as amended. Will you provide cranes only ? Will you prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide manpower ? Terms and conditions in the contract are worth reading for more clarity in reply. - Reply By Shivam Gaur - The Reply = Highly appreciate your reply sir. Sir, the crane was made available for 24 hours for 26 days a month, to erect at least 40 pieces of barricades for which party was promised to be paid ₹ 2750/ barricade, i.e. 1,10,000/- (excluding diesel) Two cranes and tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o operators were provided by the party to the metro corporation The contract also provided that in case of lesser erections of barricades the party will still be paid ₹ 1,10,000/- - Reply By KASTURI SETHI - The Reply = Position after 1.7.12 ST is also payable on the amount of Rs,1,10,000/- as it is covered under Section 66 E(e) of the Finance Ac t which is extracted below:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SECTION [66E . Declared services. - The following shall constitute declared services, namely (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; (f) transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right t o use such goods. Possession and effective control remain with the owner. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence ST leviable. - Service tax applicability on renting cranes for metro rail work - Query Started By: - Shivam Gaur Dated:- 23-4-2018 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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