Service Tax Applicability on Leasing of an Aircraft

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  1. Parandaman S

    Parandaman S New Member


    Can you please clarify that One of my client is leasing out his Aircraft to an Operator for carrying out a Charter Business.

    For the leased amount, Is the Service Tax Applicable ? Since it is leased out for commercial purpose.
    Actually Service tax is applicable for Leasing out a Immovable property which is used for commercial purpose. The same rule applies for Movable Property also right ? please clarify.

  2. Karan Batra

    Karan Batra Well-Known Member

    Supply of aircraft would be considered as Supply of Tangible Item and therefore Service Tax would be applicable in this case.

    There are many firms in India which give Machinery, Cameras, Equipments, Cars etc on Rent for months/days/ hours. This is classified as operating lease and service tax is also levied on supply of such tangible items.

    Service Tax on supply of tangible items (including Aircraft) has been introduced vide Finance Act 2008. Refer:;jsessionid=C20D7E7E484D27E1A3680842C54C3ACC
  3. Parandaman S

    Parandaman S New Member

    Thank you very much...
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