Sir/Madam.. Good Evening..
In case of Hiring fees or license fees accruing on hiring/licensing activity of movable property
1.Whether this activity is taxable in all circumstances?
2.If taxable, on which Nature & At which GST rate is it taxable?
3.Whether any restriction imposed on availment of ITC under this?
- Prima facie license fee are taxable.
However some exemptions are there like Services by way of giving on hire to a state transport undertaking, a motor
vehicle meant to carry more than twelve passengers; or to a local authority, an
Electrically operated vehicle meant to carry more than twelve passengers; or to a goods transport agency, a means of transportation of goods or motor vehicle for transport of students, faculty and staff, to a person providing services of
transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent. Pl refer to exemption notification.
2. Nature is supply of service. general rate is 18% however different rates also exists like for renting of motor vehicle wherein there are two rates 12% with ITC ad 5% without ITC.
3.Restriction is there in r/o hiring or renting of motor vehicle and also if the inward supply is used for non business / exempt supplies.
Team Clearmytax.in